Estimating the expected price of the stock


Problem:

A stock is expected to pay a $1.00 dividend per share. The growth rate is expected to be 4%.

Required:

Question: If investors demand 10% on this stock, what is the expected price of the stock 10 years from now?

  • $24.68
  • $22.17
  • $25.00
  • $26.93

Note: Please show guided help with steps and answer.

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Accounting Basics: Estimating the expected price of the stock
Reference No:- TGS0890558

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