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Fowler, Inc., just paid a dividend of $2.80 per share on its stock. The dividends are expected to grow at a constant rate of 6.75
Fowler, Inc., just paid a dividend of $2.80 per share on its stock. The dividends are expected to grow at a constant rate of 6.75 percent per year, indefinitely. Assume investors require a return of 12 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 four years and in sixteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) |
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