What is your estimate of the stock price one-year from now


Acme paid a $2-per-share dividend yesterday. Its dividends are expected to decline steadily at 3% per year, indefinitely. a. (5 pts) If the appropriate discount rate for Acme’s stock is 12%, what is your estimate of its current price (Po)? b. What is your estimate of the stock price one-year from now (P1)?

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Financial Management: What is your estimate of the stock price one-year from now
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