Aphrodite Corporation's common stock is selling at 129 dollars a share. It just paid a dividend of 7 dollars. Investors expect a return of 15% on their investment on Aphrodite's common stock.
(1.) Given the information above what is the expected growth of future dividends?
(2.) What is the associate Dividend Yield?
(3.) The stock is traded at the NASDAQ Stock Exchange with the Quoted/Traded Price of 95 dollars. Is the stock Overvalued or Undervalued?
(4.) What will be the price of Aphrodite's stock five years from now?
(5.) What are the limitations of this model?