What should the stocks price be

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Reference no: EM13911330

Given the following data, what should the price of the stock be? Round your answer to the nearest cent.

Required return 12% Present dividend $4 Growth rate 7%

If the growth rate increases to 8 percent and the dividend remains $4, what should the stock's price be? Round your answer to the nearest cent.

If the required return declines to 11 percent and the dividend remains $4, what should the price of the stock be? Assume that the growth rate equals 7%. Round your answer to the nearest cent.

Reference no: EM13911330

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