What will the companys expected stock price be at the


The year-end dividend of a stock will be $2.00, i.e., D1 = $2.00. The dividend is expected to decline at a rate of 5% a year forever (g = -5%). If the company is in equilibrium and its expected and required rate of return is 15%, what will the company’s expected stock price be at the beginning of next year? (Show all your work)

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Financial Management: What will the companys expected stock price be at the
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