Henebry Co.'s stock price is $60 per share, and its expected year-end $4.20). The stock's required return is 9%, dividend is $4.20 a share (D1 = and the dividend is expected to grow at a constant rate forever. What is the expected price of the stock 6 years from now? a. $63.67 b. $64.95 c. $ 66.24 d. $67.57 e. $68.92

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
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Henebry Co.'s stock price is $60 per share, and its expected year - end
dividend is $4.20 a share (D1 = $4.20). The stock's required return is 9%,
and the dividend is expected to grow at a constant rate forever. What is the
expected price of the stock 6 years from now? a. $63.67 b. $64.95 c. $
66.24 d. $67.57 e. $68.92
Transcribed Image Text:Henebry Co.'s stock price is $60 per share, and its expected year - end dividend is $4.20 a share (D1 = $4.20). The stock's required return is 9%, and the dividend is expected to grow at a constant rate forever. What is the expected price of the stock 6 years from now? a. $63.67 b. $64.95 c. $ 66.24 d. $67.57 e. $68.92
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