Shares of Exeter, Inc. common stock currently trade on the market for $90 per share. The firm paid a $3.00 per share dividend this year, and that dividend is expected to grow by 5% per year indefinitely.
What is Exeter's expected dividend for next year? On that basis, if you believe that the appropriate required return on equity (re) for Exeter is 8%, what would you estimate the value per share of Exeter stock to be?
