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What is the company current stock price

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Question - The XYZ Company just paid a dividend of D0 = $1.0 per share, and that dividend is expected to grow at a constant rate of 2.00% for the first 2 years and then 2% per year from year 3 till forever. The company's beta is 1.1, the expected market return is 8%, and the nominal risk-free rate is 4.00%.

(a) What is the company's current stock price?

(b) What is the expected stock price in 10 years?

(c) What is the expected stock price in 20 years?

Reference no: EM133173514

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