Senegalese Delivery Service (SDS) has a stock that recently paid an annual dividend of $1.50. The...

Transcribed Image Text:

Senegalese Delivery Service (SDS) has a stock that recently paid an annual dividend of $1.50. The CFO suggests that the dividend will grow at a rate of 4% forever. If investors require a 12% return on stocks similar to SDS, what is your estimate of the stock price? Senegalese Delivery Service (SDS) has a stock that recently paid an annual dividend of $1.50. The CFO suggests that the dividend will grow at a rate of 4% forever. If investors require a 12% return on stocks similar to SDS, what is your estimate of the stock price?