What should x sell for today what should it sell

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Reference no: EM133331607

Question: $35.50 per share is the current price for Foster Farms' stock. The dividend is projected to increase at 10 % per year for the next 3 years. After three years it is expected to grow at 4% indefinitely. Foster paid a dividend of $2.50 yesterday. X's return generally responds to market changes twice as much as does the average stock. Treasury bills currently yield 8%. The market is yielding 11%. What should X sell for today? What should it sell for in 3 years?

Reference no: EM133331607

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