National inc just paid a dividend of 145 per share on its


Question: National Inc. just paid a dividend of $1.45 per share on its stock and its dividends are expected to grow at a constant rate of 6% annually indefinitely. The required return investors demand for this kind of company is 11%. *****Assume a year consists of exactly 52 weeks.

(a) What is the current stock price?

(b) What will the stock price be in 3 years?

(c) What will the stock price be in 15 years?

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Finance Basics: National inc just paid a dividend of 145 per share on its
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