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?

$28.14

Step-by-step explanation:

The following information can be gotten from the question:

Stock price(P) = $20

Dividend (D1) = $2

Required rate of return = 15% = 0.15

To calculate growth rate, we use:

P=D1/(k-g)

20=2/(0.15-g)

20(0.15-g) = 2

3 - 20g = 2

20g = 1

g = 1/20

g = 0.05 = 5%

To calculate the price after 7 years, this means we will have to find the dividend for the 8th year.

D8=D1(1+.05)^7

D8 = 2(1+0.5)^7

D8= 2.814

Then,

P7=D8/(K-G),

P7 = 2.814/(0.15 - 0.05)

P7 = 2.814/0.1

P7=28.14

The expected price of the stock seven years from now will be $28.14

step-by-step explanation: step 3 should really go to step seven, but anyway never mind.

1 ∠oln ≅ ∠lno

the central idea is that:

individuals should refuse to cooperate with institutions they believe unjust.

thoreau felt  that governments were more often agents of corruption than justice, even democracies, and that just because the majority feels a certain way does not make it just or correct in absolute terms. he uses the fact that slavery exists in our democracy to support this idea.

he goes on to say that, as a result, people should live true to their own internal laws regarding right and wrong, as a product of reflection and a moral life, rather than following every law that society imposes. 

step-by-step explanation: