Dividends are expected to grow at constant rate

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Gilmore, Inc., just paid a dividend of $2.65 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock. What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current price $ What will the price be in five years and in fourteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.) Price Five years $ Fourteen years $

Reference no: EM131311794

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