A stock is currently priced at $41.93. Its dividend is expected to grow at a rate of 5.5% indefinitely. The stock's required return is 11.1%. The stock's predicted price 4 years from now, P4, should be $________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35). Do not enter the $ sign.
A stock is currently priced at $41.93. Its dividend is expected to grow at a rate of 5.5% indefinitely. The stock's required return is 11.1%. The stock's predicted price 4 years from now, P4, should be $________. Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35). Do not enter the $ sign.
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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A stock is currently priced at $41.93. Its dividend is expected to grow at a rate of 5.5% indefinitely. The stock's required return is 11.1%. The stock's predicted price 4 years from now, P4, should be $________.
Do not round any intermediate work, but round your final answer to 2 decimal places (ex: $12.34567 should be entered as 12.35). Do not enter the $ sign.
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