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Year 1 $1.00 Year 2 $1.12 Year 3 $1.25 Year 4 $1.40 Year 5 $1.57 Year 6 $1.76 Year 7 $1.97 The company will then
Year 1 $1.00 Year 2 $1.12 Year 3 $1.25 Year 4 $1.40 Year 5 $1.57 Year 6 $1.76 Year 7 $1.97 The company will then have a constant dividend of $2.30 forever. What is the stock's price today if an investor wants to earn a. 15%? b. 23%? a. What is the stock's price today if an investor wants to earn 15%? (Round to the nearest cent.) b. What is the stock's price today if an investor wants to earn 23%? (Round to the nearest cent.)
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