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Rates of return on an investment

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If James Smith Lines does not change their dividend and investors expect a 14% return on their investment, what do they expect their price to be one year from now? Do not use Time Value Money.

Attached is an Excel file from my homework problem (#15) that has James Smith Lines' information.

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Solution Summary

Rates of return on an investment are determined and the steps are shown in the solution.

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P0 = $18.73 (Take the closing price)
D0 = 0.95
D1=0.95 (there is no change in dividend paid
r=14%

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