What will the price of the stock be in todays dollars

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You are debating on investing in a new corporation that has just completed its first year of business. In that year, they reported $500,000 in net income and have set their retention ratio at 80%. There are currently 100,000 outstanding shares. They anticipate the growth rate next year to be 10%, followed by 13% the next year before it levels off at 9%. If you require an 11% rate of return, what will the price of the stock be in today's dollars? FORMAT TO 4 DECIMAL PLACES.

Reference no: EM131059711

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