The Island Tourist Company, Inc. just paid a dividend of $2.25 per share, and that dividend...

  

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The Island Tourist Company, Inc. just paid a dividend of $2.25 per share, and that dividend is expected to grow at a constant rate of 3.50% per year in the future. The company's required rate of return on the stock is 11.95%. At what price should the company's stock sell? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $123.456 then enter as 123.46 in the answer box. The Island Tourist Company, Inc. just paid a dividend of $2.25 per share, and that dividend is expected to grow at a constant rate of 3.50% per year in the future. The company's required rate of return on the stock is 11.95%. At what price should the company's stock sell? Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $123.456 then enter as 123.46 in the answer box.

Answer rating: 100% (QA)

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