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photoshop1234 [79]
3 years ago
15

Whited Inc.'s stock currently sells for $35.25 per share. The dividend is projected to increase at a constant rate of 5.25% per

year. The required rate of return on the stock, rs, is 11.50%. What is the stock's expected price 5 years from now
Business
1 answer:
kari74 [83]3 years ago
6 0

Answer:

$45.47

Explanation:

Data provided as per the given question below:-

Stock's Current Price = $35.25

Growth rate = 5.25%

Years = 5

The computation of stock's expected price is shown below:-

Stock's expected price = Stock's Current Price × (1 + growth rate)^5

= $35.25 × (1 + 5.25%)^5

= $35.25 × (1.0525)^5

= $35.25 × 1.29

= $45.47

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3 years ago
Josey started a business called music and memories™. She recognized that music, socialization, and memory-challenging activities
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