What will the stock price be in three years

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Reference no: EM131837783

The Starr Co. just paid a dividend of $1.15 per share on its stock. The dividends are expected to grow at a constant rate of 7 percent per year indefinitely. Investors require a return of 12 percent on the company's stock.

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

Current price $

What will the stock price be in three years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Stock price $

What will the stock price be in 12 years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

Stock price $

Reference no: EM131837783

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