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?
-27.85
-26.75
-27.30
-26.00
-9.75
What will the price be in 12 years?
-50.01
-46.69
-49.03
-17.51
-48.05