What is the price of the stock after five years

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Question - Future Dividends and Future Price

Q1. Suppose the company is expected to pay a divided of $2.5 and the required rate of return is 10% and the growth rate is 4%. What is the price of the stock after 5 years? after 10 years? after 12 years?

Q2. Suppose the company just paid a divided of $2.5 and the required rate of return is 10% and the growth rate is 4%. What is the price of the stock after 5 years? after 10 years? after 12 years?

Q3. Suppose ABC, Inc. is expected to pay a dividend of $10 next year. that is, D1 = $10. The dividends are expected to grow by 3%. What is D8, D15, D25?

Q4. Suppose ABC, Inc. just paid a dividend of $10. that is, D0 = $10. The dividends are expected to grow by 3%. What is D8, D15, D25?

Reference no: EM132824651

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