What is the stock expected price two years from today

Assignment Help Financial Management

Reference no: EM131992842

A stock is expected to pay a dividend of $2.25 at the end of the year (i.e., D1 = $2.25), and it should continue to grow at a constant rate of 4% a year. If its required return is 12%, what is the stock's expected price 2 years from today? Round your answer to two decimal places. Do not round your intermediate calculations.

Reference no: EM131992842

Questions Cloud

Developing the company branding and distribution strategy : Develop the company's branding, pricing, and distribution strategy. Classify the company's major competitors as inter- or intra-competitors.

Draw the new budget constraint : Draw the new budget constraint. Assuming again that leisure is a normal good, will John work more or less than 30 hours per week? Explain.

Future of the world economy and power : Looking at what is happening here in the U.S. and in East Asia, How do you see the future of the world economy and power?

Explain the four axioms of conflict according to watkins : Explain the four axioms of conflict according to Watkins, and how each relates to communication.

What is the stock expected price two years from today : If its required return is 12%, what is the stock's expected price 2 years from today?

Calculate labor force participation rate : Following information is extracted from a database maintained by the country's ministry of labor:

What do you need to learn more about : What was the most surprising thing you learned? What do you need to learn more about? Do you see the rise of consumer power through evolving changes.

Greatest type of discrimination in the us-wage : What is the Greatest Type of Discrimination in the US-Wage, Employment, or Occupational?

Regarding bonds in the secondary market : Which is true about the "duration" of bonds? Regarding bonds in the secondary market...

User Account

All Pages