The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.95 per share on its stock. The dividends are?

Question

expected to grow at a constant rate of 6 percent per year indefinitely. If investors require an 11 percent return on The Jackson-Timberlake Wardrobe Co. stock, what is the current price? The price in 3 years? 15 years?

Thanks!

Answer 1

2.07/(.11-.06)



For the current price use next years dividend. Use the formula below and figure out what the dividend will be in those years then use the same numbers for growth and expected return.

Answer 2

You can not figure the current price from the dividend. Dividend and stock price are two different things. If "Jackson-Timberlake Wardrobe Co." is a real company, you can look up the current price on Yahoo Finance. If you need more help, click my pic.

Answer 3

the only Acme i be conscious of of is Acme Packet, which trades at $29 and alter, and could pay no dividend. except this is a homework question, wherein case the respond is (6) "i do no longer help those with homework."