Show numerically that investment horizon has no bearing on current stock price.For your illustration assume investment horizons of 3 versus 5 years and the following facts: The stock is correctly priced at $40.00,has a required return of 17%,a growth rate of 7%,and has just paid a $3.74 dividend.

Question

Quizplus · Accepted Answer

The Answer of Show numerically that investment horizon has no bearing on current stock price.For your illustration assume investment horizons of 3 versus 5 years and the following facts: The stock is correctly priced at $40.00,has a required return of 17%,a growth rate of 7%,and has just paid a $3.74 dividend.

Show Numerically That Investment Horizon Has No Bearing on Current