Estimating the future price of given stock

Reference no: EM1327848

A company has announced the growth rate of its dividend going forward will be 2% annually forever. The dividend in year 4 will be $3.00. The discount rate on the stock is 10%. What will the stock price be in year 18?

Reference no: EM1327848

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Computing future value of given stock : A company has announced growth rate of its dividend going forward will be 2% annually forever. The dividend in year 4 will be $3.00. The discount rate on the stock is 10%. What will stock price be in year 18?

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