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Kirkland Motors stock is expected to pay a $2.00 year-end dividend (D1 = $2.00). The stocks intrinsic value today based constant growth rate formula is
Kirkland Motors stock is expected to pay a $2.00 year-end dividend (D1 = $2.00). The stocks intrinsic value today based constant growth rate formula is $20.00 a share. The required rate of return on the companys stock is 12% (rs = 0.12). The dividend is expected to grow at some constant rate over time. What is the expected stock price five years from now, that is, what is ?
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