The Jackson-Timberlake Wardrobe Co

Finance Dec 10, 2020

The Jackson-Timberlake Wardrobe Co. just paid a dividend of $1.54 per share on its stock. The dividends are expected to grow at a constant rate of 8 percent per year indefinitely a. If investors require a return of 15 percent on the company's stock, what is the current price? $23.76 $24.24 $23.28 $22.00 $6.70 b. What will the price be in 19 years? $102.54 $104.59 $100.49 $94.95 $28.90

Expert Solution

The answers to the given question are provided in the order below

1.
=1.54*1.08/(15%-8%)=23.76

2.
=1.54*1.08/(15%-8%)*1.08^19=102.541057164685

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