Starting in 5 years a stock will make a 5share dividend


Show all work and circle your final answer. Round final answer to the nearest hundredth.

1. Starting in 5 years, a stock will make $5/share dividend payments every year, forever.  R=11%. Calculate the stock price.

2. Starting in 5 years, a stock will make a $5/share dividend payment. They will grow their dividend payments by 5% every year, forever.  R=11%. Calculate the stock price.

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Finance Basics: Starting in 5 years a stock will make a 5share dividend
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