Estimate the current share price today of bower

Reference no: EM133291080

Question: Currently, Bower Inc. pays no dividends. However, analysts forecast that in 4 years Bower will pay its first annual dividend of $ 3.50 and dividends will grow at 6% per year thereafter. If stocks with similar risk to the equity of Bower currently earn a return of 12%, estimate the current share price (today) of Bower

Reference no: EM133291080

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