Task1. The Jackson Johnson Wardrobe Co. just paid a dividend of $1.70 per share on its stock. The dividends are expected to grow at a stable rate of 5 percent per year indefinitely. Investors need a return of 15 percent on the company's stock.
problem1. What is current stock price?
problem2. What will the stock price be in 3 years?
problem3. What will the stock price be in 20 years?