Problemamador corporation has a stock price of 22 a share, Ask an Expert

Accounting

Problem:

Amador Corporation has a stock price of $22 a share. The stock's year-end dividend is expected to be $2 a share. The stock's required rate of return is 12 percent and the stock's dividend is expected to grow at the same constant rate forever.

Required:

Question: What is the expected price of the stock six years from now?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169285

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