What is the current stock price of watts

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Question 1

The Watts Company has just recently been restructured. It is expected to experience no growth for the next 2 years as it identifies business opportunities. However, Watts will grow at an annual rate of 5% in the third year and, beginning with fourth year, should attain a 10% growth rate which will sustain thereafter. The first dividend to be paid at the end of the first year is expected to be $0.50 per share. Shareholders required a 15% rate of return.

Required:

What is the current stock price of Watts?

Reference no: EM133071910

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