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Fowler, Inc., just paid a dividend of $2.45 per share on its stock. The dividends are expected to grow at a constant rate of 5
Fowler, Inc., just paid a dividend of $2.45 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock. a. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) b. What will the price be in five years and in fourteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Current price b. Price in five years . Price in fourteen years
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