Dividends are expected to grow at constant rate

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The Starr Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require a return of 10 percent on the stock. What is the current price? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Current price $ What will the price be in three years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16)) Stock price $ What will the price be in 12 years? (Do not round intermediate calculations and round your final answer to 2 decimal places. (e.g., 32.16))

Reference no: EM13878307

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Dividends are expected to grow at constant rate : The Starr Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. Investors require a return of 10 percent on the stock. What is the current price?

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