"Strategic channel alliance" <span>use another manufacturer's already established channel and are used most often when the creation of marketing channel relationships may be expensive and time-consuming.
Hope this helps !
Photon</span>
Answer and Explanation:
The computation is shown below:
Last years Dividend, D0 = $2.48
Growth Rate, g = 7%
Required Return, r = 12%
Now
D1 = D0 × (1 + g)
= $2.48 × 1.07
= $2.6536
Now
1 The Current Price is
P0 = D1 ÷ (r - g)
= $2.6536 ÷ (12% - 7%)
= $53.072
2. For the stock price in 5 years is
P5 = P0 × (1 + g)^5
= $53.072 × 1.07^5
= $74.436
3. For the stock price in 20 years is
P20 = P0 × (1 + g)^520
= $53.072 × 1.07^20
= $205.37
