What will the price be in five years and in fourteen years

Assignment Help Financial Management

Reference no: EM131886260

Gilmore, Inc., just paid a dividend of $2.45 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely. Assume investors require a return of 10 percent on this stock.

What is the current price? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.)

Current price $

What will the price be in five years and in fourteen years? (Do not round intermediate calculations and round your answers to 2 decimal places, e.g., 32.16.)

Price

Five years $

Fourteen years $

Reference no: EM131886260

Questions Cloud

Is walt disney a related diversifier : Is Walt Disney Co. a related diversifier? Explain why or why not?

What is the target share price seven years from now : What is the target share price seven years from now?

Independent and mutually exclusive projects : What is the difference between independent and mutually exclusive projects? Would the NPVs change if the cost of capital changed?

Values of mean return and variance for the stock fund : Calculate the values of mean return and variance for the stock fund.

What will the price be in five years and in fourteen years : What will the price be in five years and in fourteen years?

What is each project equivalent annual annuity : What is each project’s initial NPV without replication? What is each project’s equivalent annual annuity?

Should wade accept an offer paying : If Wade’s boss requires an 8% interest rate, should Wade accept the offer? Should Wade accept an offer paying $11,000 per year for 6 years?

What is the fixed amount you have to save each month : If you can receive 5% interest annually on a savings account, what is the fixed amount you have to save each month?

What are normal and non normal cash flows : What are normal and non normal cash flows? What is Project P’s NPV? What is its IRR? What is its MIRR?

User Account

All Pages