The jackson-timberlake wardrobe co. just paid a dividend of $2.15 per share on its stock. the dividends are expected to grow at a constant rate of 4 percent per year indefinitely. if investors require a return of 10.5 percent on the company’s stock,

(a)-what is the current price?

(b)-what will the price be in three years?

( will the price be 15 years?

a)  

$34.4

b)

$37.20

c) $59.57

Explanation:

Given:

Dividend paid = $2.15

Growth rate = 4% = 0.04

Required return = 10.5% = 0.105

Now,

a) Present value =

for the current price n = 1

thus,

Current price =

=  

=  $34.4

b) Price in 3 years

i.e n = 3

=

=  

=

$37.20

c) Price in 15 years

i.e n = 15

=

=  

=  $59.57

the best way to learn how to declare a major is to talk to a admissions office.

answerblank(1) //inferiorblank(2) ramen noodles;