Whats the Miller stock price on year 7? how do we find this out by plugging in a

Question

Whats the Miller stock price on year 7?

how do we find this out by plugging in a function in excel?

Miller Company just paid a dividend of$ 1.55 per share. The required rate of return on Miller stack is 10.3% per year. Miller anticipates the following yearly growth rates in dividends. Starting in year 8, the dividend will grow at 3% per year indefinitely. HINT: you may find It helpful to calculate dividends and cash flows to help you solve this problem, but you are free to solve however you wish as long as you use Excel 10.30%

Explanation / Answer

As we know by the dividend discount model: Dividend discount model = Value of stock = Next period dividend per share / Discount Rate

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