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    Expected Stock Price

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    Kirkland Motors expects to pay a $2 per share dividend on its common stock at the end of the year (i.e. D1 = $2). The stock currently sells for $20 a share. The required rate of return on the company's stock is 12 percent (i.e. ks = .12). The dividend is expected to grow at some constant rate over time. What is the expected stock price five years from now?

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    https://brainmass.com/business/finance/expected-stock-price-years-11513

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    Note: In this case the information about the dividends and the information that it ...

    Solution Summary

    The solution determines the expected stock price 5 years from now.

    $2.19

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