In: Finance
Headland Clothiers Ltd.’s current dividend is $3.20. Dividends
are expected to grow by 8 percent for years 1 to 3, 6 percent for
years 4 to 7, and 2 percent thereafter. The required rate of return
on the stock is 11 percent. What is the current stock price for
Sunland? (Round intermediate calculations to 4 decimal
places, e.g. 45.1771 and final answer to 2 decimal places, e.g.
45.17.)