What will the price be in three years and in fifteen years

Reference no: EM13256607

Patience, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

Requirement 1:
What is the current price? (Do not include the dollar sign ($).

Requirement 2:
What will the price be in three years and in fifteen years?

Reference no: EM13256607

Questions Cloud

Explain a reaction of cyclobutene with nbs and light : A reaction of cyclobutene with NBS and light. Why does a bromide produce on the secondary carbon not the tertiary like a normal bromonation. What exactly does NBS do

Determine the possible rocs of the system : a) Draw a cascade or parallel form for the block diagram representation of the system b) Determine the possible ROC's of this system. For each case determine causality and stability of the system.

Flower shoppe that is needed for financial-statement : Additional information about the Flower Shoppe that is needed for financial-statement preparation:

Company legal and financial responsibility : The extent of the company legal and financial responsibility for this accident, if any, can't be determined at this time.

What will the price be in three years and in fifteen years : Patience, Inc., just paid a dividend of $3.15 per share on its stock. The dividends are expected to grow at a constant rate of 6.00 percent per year, indefinitely. Assume investors require an 11 percent return on this stock.

Create t-accounts for the accounts on the balance sheet : Create T-accounts for each of the accounts on the balance sheet and enter the balances at the end of 2005 asbeginning balances on January 1, 2006.

How do analog filters behave with low and high frequencies : The Integrator and Differentiator appear to behave like analog filters. What kind of filters are they, how do they behave with low and high frequencies

Compute the sample mean and sample variance : Simulate 2000 coin flip experiments with a biased coin with "success" probability (chance of 1) p = 1/5. Plot an outcome of the proportion of successes with respect to the number of coin flips. Supply your code.

What is the expected capital gains yield : The next dividend payment by Mosby, Inc., will be $2.90 per share. The dividends are anticipated to maintain a 7.75 percent growth rate, forever. Assume the stock currently sells for $49.40 per share.

User Account

All Pages