What is current share price if required return on stock

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Reference no: EM13813393

Springboro Tech is a young start-up company. No dividends will be paid on the stock over the next 10 years, because the firm needs to plow back its earnings to fuel growth. The company will pay a $9.5 per share dividend in 11 years (D11=$9.5) and will increase the dividend by 3 percent per year thereafter. What is the current share price if the required return on this stock is 7 percent?

$128.59

$119.12

$118.22

$120.73

$140.00

Reference no: EM13813393

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