Question
The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate
| The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.40 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely. |
| Required: | |
| (a) | If investors require a 15 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? |
| A. $18.35 B.$18.72 C.$19.10 D.$6.36 E.$17.50 | |
| (b) | What will the price be in 9 years? |
| A. $35.11 B. $11.70 C.$32.17 D.$33.74 E.$34.43 |
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International Business The Challenges Of Globalization
Authors: John J. Wild, Kenneth L. Wild
9th Edition
0134729226, 978-0134729220
