What is the price of the stock 9 years from today

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Eat Your Fill Restaurants is a young, quickly growing company. No dividends will be paid on the stock over the next 9 years, because the firm needs to plow back its earnings to fuel growth. The company will then pay a dividend of $15.75 per share 10 years from today and will increase the dividend by 5 percent per yer thereafter. The required return on the stock is 13 percent.

a. What is the price of the stock 9 years from today?

b. What is their stock price today?

Reference no: EM132204061

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