Question: Stetson's current stock price is $ 3 9 , and its expected dividend was $ 2 . 0 3 . In view of Stetson's strong

Stetson's current stock price is $39, and its expected dividend was $2.03. In view of Stetson's strong financial position and its low risk, its beta is only 0.82. The risk free rate is 2.6% and the market risk premium is 5.6%. If dividends are expected to grow at a constant rate of g in the future, then what is Stetson's expected stock price 6 years from now?
You may use the calculator or excel sheet provided below.
Click to open:
The spreadsheet link above has been provided to allow you to do your work.
$43.89
$42.69
$42.93
$43.03
 Stetson's current stock price is $39, and its expected dividend was

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!