Question
The Nearside Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of
The Nearside Co. just paid a dividend of $1.95 per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year, indefinitely. Investors require a return of 11 percent on the stock.
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 6 years?(Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)
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