Round barn stock has a required return of 1100 and is, Ask an Expert

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Round Barn stock has a required return of 11.00% and is expected to pay a dividend of $2.35 next year. Investors expect a growth rate of 6.00% on the dividends for the foreseeable future. What is the current fair price for the stock? (Round your answer to 2 decimal places.)

Suppose the stock is selling at this price, but then investors revise their expectations. The new expectation for the growth rate is 5.80%. If investors are rational, what will be the new price for Round Barn stock? (Round your answer to 2 decimal places.)

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Financial Management, Finance

Category:- Financial Management
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