FIN 5001 – ABC Enterprises’ stock is currently selling for $72.1 per share
January 3rd, 2018
ABC Enterprises’ stock is currently selling for $72.1 per share. The dividend is projected to increase at a constant rate of 5.6% per year. The required rate of return on the stock is 12%. What is the stock’s expected price 5 years from today (i.e. solve for P5)?Note: Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box. For example, if your answer is $12.345 then enter as 12.35 in the answer box.