What is roussakis expected price five years from now

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Reference no: EM132741222

Problem 1: A share of common stock has just paid a dividend of $4.50. If the expected long-run growth rate for this stock is 3%, and if investors' required rate of return is 10.5%, what is the stock's intrinsic value?

Problem 2: M. Roussakis Inc.'s stock currently sells for $35.00 per share. The stock's dividend is projected to increase at a constant rate of 4% per year. The required rate of return on the stock, rs, is 14.50%. What is Roussakis' expected price 5 years from now?

Reference no: EM132741222

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