Problemberkeley inc just paid an annual dividend of 260 per, Ask an Expert

Accounting

Problem:

Berkeley, Inc. just paid an annual dividend of $2.60 per share on its stock. The dividends are expected to grow at a constant rate of 4.5 percent per year, indefinitely.

Required:

If investors require an 11 percent return on this stock, what will the price be in 12 years?

66.46
67.84
69.16
70.89
74.08

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91170860

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