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Today is Dec. 31, 2070, and Houston Tea Party, Inc. (HTP) has just paid an annual dividend of $2 per share. The companys dividend in
Today is Dec. 31, 2070, and Houston Tea Party, Inc. (HTP) has just paid an annual dividend of $2 per share. The companys dividend in one year from today will increase by 5% and is expected to grow at the same rate each year thereafter. That is, the firm is expected to pay a dividend of $2.10 at the end of 2071 and its annual dividend will increase by 5% each year. The market requires 12% return on the investments similar to HTPs equity shares. Find the price of the firms stock.
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