Whited Inc.'s stock currently sells for $45.57 per share. The dividend is projected to increase at...

Whited Inc.'s stock currently sells for $45.57 per share. The dividend is projected to increase at a constant rate of 4.0% per year. The required rate of return on the stock, rs, is 10.4%. What is the stock's expected price 5 years from now?

Expert Solution

P5=Current price*(1+Growth rate)^5

=45.57*(1.04)^5

=45.57*1.2166529

which is equal to

=$55.44(Approx)

jeff jeffy answered 2 years ago

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