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Sun Investment Inc. current stock price is $450 and its last dividend was $8.00. In view of Suns strong financial position and its consequent low
Sun Investment Inc. current stock price is $450 and its last dividend was $8.00. In view of Suns strong financial position and its consequent low risk, its required rate of return is 6%. If dividends are expected to grow at a constant rate, g, in the future and r is expected to remain at 6%, what do you forecast Suns stock price to be 2 years from now? USE AT LEAST 4 DECIMAL PLACES
*HINT: find the growth rate first
A. $400.55
B. $488.54
C. $492.22
D. $350.97
E. $450.38
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