What will stock price be in three years-current stock price

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Reference no: EM131338164

The Starr Co. just paid a dividend of $1.35 per share on its stock. The dividends are expected to grow at a constant rate of 3 percent per year indefinitely. Investors require a return of 10 percent on the company's stock.

What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Current price $__________

What will the stock price be in three years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Stock price $__________

What will the stock price be in 15 years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) Stock price $___________

Reference no: EM131338164

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