A company will pay an annual dividend, the first to be paid in exactly 8 years.The first dividend will be $3, and this will grow by 2% per year, forever.Investors require a 10% annual return.

a) What is the stock price today?

b) What's the stock price two years later?

please show all calculations with excel, and how you got them

Answer rating: 100% (QA)

To calculate the stock price today and two years later we can use the formula for the present value ... View the full answer