A firm's stock price is $25 per share and is expected to grow at a 5% compound annual rate.What should the stock price per share be in five years?
A) $26.25
B) $125.00
C) $75.00
D) $31.91
E) $69.66

Question

Quizplus · Accepted Answer

FV = PV × 11ea7fdb_fc25_c3f2_a768_9547d75b59e0_TB2902_00 FV = 25 × 11ea7fdb_fc25_c3f3_a768_c9b84ad1427c_TB2902_00 = $31.91
Using a financial calculator:
N = 5, I/Y = 5, PV = -25, PMT = 0, cpt FV = $31.91

A Firm's Stock Price Is $25 Per Share and Is