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The Nearside Co. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of
The Nearside Co. just paid a dividend of $1.65 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Investors require a return of 12 percent on the stock. 1 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 three years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) c. What will the price be in 14 years? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) 18 points ook Print References Current price 24.75 . b. Stock price $ 28.65 c. Stock price $ 49.00
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