Fletcher’s Company’s current stock price is $36, and its last dividend was $2.40. In view of Fletcher’s strong financial position and its consequent low risk, its required rate of return is only 12%. If dividends are expected to grow at a constant rate, g , in the future, and if k s is expected to remain at 12%, what is Fletcher’s expected stock price 5 years from now?

Fletcher’s Company’s current stock price is $36, and its last dividend was $2.40. In view of Fletcher’s strong financial position and its consequent low risk, its required rate of return is only 12%....

Jun 03, 2022