29. Orange Systems stock currently sells for $50.00 per share. The dividend is projected to increase at a constant rate of 50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from wday? a. $71.04 b. $71.63 c. $58.71 d. $68.69 e. $61.65 Page 8
29. Orange Systems stock currently sells for $50.00 per share. The dividend is projected to increase at a constant rate of 50% per year. The required rate of return on the stock, rs, is 9.00%. What is the stock's expected price 3 years from wday? a. $71.04 b. $71.63 c. $58.71 d. $68.69 e. $61.65 Page 8
Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 2P
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