8) River City Recycling just paid its annual dividend of $1.15 per share. The required return is 12.3 percent and the dividend growth rate is 0.75 percent. What is the expected value of this stock five years from now

P5 = $10.41324736 rounded off to $10.41

Explanation:

Using the constant growth model of dividend discount model, we can calculate the price of the stock today. The DDM values a stock based on the present value of the expected future dividends from the stock. The formula for price today under this model is,

P0 = D0 * (1+g) / (r - g)    or   D1 / (1+g)

Where,

To calculate the price of the stock today, we use D1. Similarly, to calculate the price of the stock five years from now or P5, we will use D6.

D6 = D0 * (1+g)^6

D6 = 1.15 * (1+0.0075)^6

D6 = $1.20273007

P5 = 1.20273007  /  (0.123 - 0.0075)

P5 = $10.41324736 rounded off to $10.41

idk

explanation:

bc why nah

answer; (a) searching for information can be done quickly;