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What would be the price of the stock in one year

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Reference no: EM132796150

Problem 1: Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% thereafter. Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ?

1. $37.47
2. $38.47
3. $39.47
4. $40.47
5. $41.47

Problem 1: Exxon's dividends are expected to grow at a rate of 15% during the next two years, 10 % in the third year, and at a constant rate of 5% thereafter. Exxon's last dividend, which has just been paid, was $2.00. If the required rate of return on the stock is 12%, what would be the price of the stock in one year (P1) ?

1. $37.47
2. $38.47
3. $39.47
4. $40.47
5. $41.47

Reference no: EM132796150

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