Finance 3403 Chapter 8 - Chapter 8 Using the Dividend Growth Model P0 = D1(R g Chapter 8 The Jackson-Timberlake Wardrobe Co just paid a dividend of

Finance 3403 Chapter 8 - Chapter 8 Using the Dividend...

This preview shows page 1 - 10 out of 10 pages.

Chapter 8 Using the Dividend Growth Model P 0 = D 1 / (R – g)
Chapter 8 The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.60 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent per year, indefinitely. If investors require a 12 percent return on The Jackson-Timberlake Wardrobe Co. stock, the current price is $___ . The price will be $____ in 3 years and $____ in 15 years.
Chapter 8

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture

  • Left Quote Icon

    Student Picture