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Waters Corporation has a stock price of $20 a share. The stock’s year-end dividend is expected to be $2 a share (D1 = $2.00). The stock’s required rate of return is 15 percent and the stock’s dividend
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Waters Corporation has a stock price of $20 a share. The stock’s year-end dividend is expected to be $2 a share (D1 = $2.00). The stock’s required rate of return is 15 percent and the stock’s dividend is expected to grow at the same constant rate forever. What is the expected price of the stock seven years from now?

Select one:
A. $28
B. $53
C. $27
D. $23
E. $39

User Krowi
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The answer to the question is A $28
User Aminfar
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