Ask Experts Questions for FREE Help !
Ask
    skizzlebizzle's Avatar
    skizzlebizzle Posts: 1, Reputation: 1
    New Member
    		  
    #1

    Mar 9, 2009, 06:31 PM
    Finance: expected price
    E. M. Roussakis Inc.'s stock currently sells for $45 per share. The stock's dividend is projected to increase at a constant rate of 3.75% per year. The required rate of return on the stock, rs, is 15.50%. What is Roussakis' expected price 5 years from now?

    I came up with $48.88 but I was told it is not the correct answer.
    codyman144's Avatar
    codyman144 Posts: 544, Reputation: 31
    Senior Member
    		  
    #2

    Mar 10, 2009, 07:46 AM

    How did you get $48.88 (show the work please). Also what method or model are you using.
    jassimka's Avatar
    jassimka Posts: 1, Reputation: 1
    New Member
    		  
    #3

    Feb 11, 2012, 02:30 PM
    the answer is $54.09. The equation is P0 * (1+g)N
Not your question? Ask your question View similar questions
 

Question Tools Search this Question
Search this Question:

Advanced Search

Add your answer here.


Check out some similar questions!

Finance/ current price of a stock [ 2 Answers ]

Jon's catering is growing at a very fast rate. Asa a result the company expects to increase its dividend to $.45, $.95, $1.60, and $2.15 over the next four years. Respectively. After that the dividend is projected to increase by 6 percent annually. The last annual dividend the firm paid was $.30 a...

How much swelling is to be expected. [ 7 Answers ]

How much swelling should I expect after having my tongue pierced?

View more questions Search