River Rock, Inc. has just paid an annual dividend of $2.80. The company has increased its dividend by 2.5 percent per year for the past 10 years and expects to continue to do so. What will be the value of a share of these stocks 6 years from now if the required return is 16 percent?

Answer rating: 100% (QA)

We can use the dividend discount model to calculate the future stock price of River Rock I... View the full answer