Woidtke manufacturings stock currently sells for 25 a, Financial Management

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Woidtke manufacturings stock currently sells for 25 a

Constant Growth Valuation

Woidtke Manufacturing's stock currently sells for $25 a share. The stock just paid a dividend of $3.25 a share (i.e., D0 = $3.25), and the dividend is expected to grow forever at a constant rate of 8% a year. What stock price is expected 1 year from now?

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Financial Management: Woidtke manufacturings stock currently sells for 25 a

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Financial Management: Woidtke manufacturings stock currently sells for 25 a

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