Dividends are expected to grow at a constant rate

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Reference no: EM13877826

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely.

A) If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?

B) What will the price be in 12 years?

Reference no: EM13877826

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