The Grist Mill just paid a dividend of $3.75 per share on its stock. The dividends...

 

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The Grist Mill just paid a dividend of $3.75 per share on its stock. The dividends are expected to grow at a constant rate of 2.5 percent per year, indefinitely. What will the price of this stock be in 7 years if investors require an annual return of 10.0 percent? The Grist Mill just paid a dividend of $3.75 per share on its stock. The dividends are expected to grow at a constant rate of 2.5 percent per year, indefinitely. What will the price of this stock be in 7 years if investors require an annual return of 10.0 percent?

Answer rating: 100% (QA)

To calculate the price of the stock in 7 years we can use the Gordon G... View the full answer