The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.32 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely.
Required:
(a) If investors require a 13 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
(Click to select) $6.60 $22.00 $23.07 $24.01 $23.54
(b) What will the price be in 8 years?
(Click to select) $41.26 $39.64 $40.45 $11.34$37.80