Dividends are expected to grow at a constant rate

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The Jackson–Timberlake Wardrobe Co. just paid a dividend of $1.25 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. What will the stock price be in 8 years?

Reference no: EM131047412

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