What price do you forecast for the stock one year from now

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Reference no: EM13333658

Horse and Buggy Inc. is in a declining industry. Sales, earnings, and dividends are all shrinking at a rate of 5% per year.

a. If r = 20% and DIV1 = $6, what is the price of a share?

b. What price do you forecast for the stock one year from now?

c. What is the cost of capital on the stock?

Reference no: EM13333658

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