What would you expect to be the stock price in one year

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Reference no: EM131333451

If you could show the work so I know how to do future problem that would be great!

1. A company has just paid a dividend of 2.32$. Its discount rate is 9.9%, and the expected perpetual growth rate is 5.3%. What would you expect to be the stock's price TODAY?

Express your answer in dollars, rounded to the nearest cent.

2. A company has just paid a dividend of 3.35$. Its discount rate is 10%, and the expected perpetual growth rate is 3.1%. What would you expect to be the stock's price IN ONE YEAR?

Enter your answer in dollars, rounded to the nearest cent.

Reference no: EM131333451

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