Question
Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5
Fowler, Inc., just paid a dividend of $2.70 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely. Assume investors require a return of 9 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 six years and in thirteen years?(Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)
a.Current price?
b. Price in 6 years?
Price in 13 years?
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