Investors require a return of 16.1% per year to hold a stock. The stock's next dividend is expected to be $2.88 per share and the dividends are expected to grow forever at a constant rate. What is the stock's value per share expected to be in four years, if the stock's current value is $39.43 per share?

Answer rating: 100% (QA)

To calculate the stocks value per share in four years we can use the Gordon Growth Model formu... View the full answer