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) KBC Inc. just paid a dividend of $12.00 per share but plans to pay $5.00 per share from the next year till year 22
) KBC Inc. just paid a dividend of $12.00 per share but plans to pay $5.00 per share from the next year till year 22 , after which, the dividend will grow at 5% for good. The required rate of return on this stock is 10%.
a. What is the current price of KBCs stock?
b. What is the expected stock price five years from today?
c. What is the expected stock price 27 years from today?
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