Problemanton inc just paid a dividend of 305 per share on, Ask an Expert

Finance

Problem:

Anton, Inc., just paid a dividend of $3.05 per share on its stock. The dividends are expected to grow at a constant rate of 5.5 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock.

Required:

Question 1: What is the current price?

Question 2: What will the price be in five years?

Question 3: What will the price be in fourteen years?

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91162077

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