The Herjavec Co. just paid a dividend of $1.85 per share on its stock. The dividends are expected to grow at a constant rate of 4 percent per year indefinitely. Investors require a return of 12 percent on the company's stock. What is the current price?What will be the price in three years?

Current price : $24.05

Price in 3 years : $27.05

Explanation:

The Current stock price of Herjavec Co will be determined by the formula given below;

Po = [Do (1 + g) ] / (r - g)

Po = Current price

Do = Current dividend

r = Rate of return

g = growth of dividend

Po = ($1.85 * 1.04) / (0.12 - 0.04)

Po = $1.924 / 0.08

Po = $24.05.

The stock price of Herjavec Co after 3 years will be determined by the formula given below;

P3 = Do (1 + g)^4 / (r - g)

P3 = [$1.85 * (1.04)^4] / (0.12 - 0.04)

P3 = $27.05

anyone below or above ambitious can tell you. so crowns mean brainliest. getting brainliest means your answer needs a good explanation and the person asking the question can understand your answer easily. so say there's a multiple choice question. you don't just want to say your answer is a, hope it . provide evidence and reasoning so that they know that that is the correct answer. a good explanation should have evidence, good reasoning, and your opinion on why you picked that. you don't want to look up their question on the internet and see if you can answer it. pick questions that you 100% know the answer to, so than that way you can provide a better explanation.

best of luck,

the divergent