What-is-the-current-stock-prices-business-and-finance-homework-help

The Starr Co. just paid a dividend of $1.25 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year indefinitely. Investors require a return of 12 percent on the company’s stock.

What is the current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

 Current price $  

 

What will the stock price be in three years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

 Stock price $  

 

What will the stock price be in 8 years? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)

 

 Stock price $