Calculate p3 for the common stock of ace manufacturing


Calculate P3 for the common stock of Ace Manufacturing Corporation according to Gordon's Model. Suppose the common stock of Ace Manufacturing currently sells for $35.50 per share. The last annual dividend of $2.50 is projected to grow by 3% next year and every year thereafter. Investors in this common stock expect a return of Ri = 6%. What is the stock's expected price 3 years from today?

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Financial Management: Calculate p3 for the common stock of ace manufacturing
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