The Starr Co. just paid a dividend of $1.50 per share on its stock.?
The dividends are expected to grow at a constant rate of 8% per year. If investors require a 13% return on the stock, what is the current price? what will be the price in three years and 15 years?
- Robert MLv 71 decade agoFavorite Answer
current price $30 if the $1.50 was a annual dividend, but most companies pay dividends quarterly
in three years dividend would be $1.89, stock price would be $37.79
15 years would tire me out, hope this helps
use a constant growth dividend valuation model.