Sun investment inc current stock price is 450 and its last, Ask an Expert

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Sun Investment Inc. current stock price is $450 and its last dividend was $8.00. In view of Sun’s strong financial position and its consequent low risk, its required rate of return is 6%. If dividends are expected to grow at a constant rate, g, in the future and r is expected to remain at 6%, what do you forecast Sun’s stock price to be 3 years from now? FORMAT TO 4 DECIMAL PLACES *HINT: find the growth rate first

A. $492.22

B. $400.55

C. $450.38

D. $488.54

E. $350.97

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91621551

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