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Stocks

The Stopperside Wardrobe Co. just paid a dividend of $1.63 per share on its stock. The dividends are expected to grow at a constant rate of 6.9% per year indefinitely. If investors require an 11.9% return on The Stopperside Wardrobe Co. stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.)

 

What is the current price?

 

Current price           $ 

 

What will the price be in three years?

 

Stock price in three years           $ 

 

What will the price be in 15 years?

 

Stock price in 15 years           $ 


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