The dividends are expected to grow at constant rate

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Reference no: EM13877839

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.56 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely.

(a) If investors require a 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price?

-27.85

-26.75

-27.30

-26.00

-9.75

What will the price be in 12 years?

-50.01

-46.69

-49.03

-17.51

-48.05

Reference no: EM13877839

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