The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely.
A) If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?
B) What will the price be in 12 years?