What is market price per share today of kmis common stock

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Reference no: EM131826480

It is now January 1, 2002. Kabuliwallah motors, inc. is expected to pay a dividend of $1.12 per share at the end of the year (i.e., on December 31, 2002). The dividend is expected to grow at a rate of 4% per year thereafter forever. Investors require an expected return of 15% per year on stocks like KMI.

a. What is the market price per share today of KMI's common stock?

b. What will the price per share be at the beginning of 2003? (That is, what will be the price per share be at January 1, 2003?)

c. What rate of return will investors earn of KMI's stock over the year 2002?

Reference no: EM131826480

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