A firm 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 5 years?
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calculate the compounded figure after 5 years.
Principal equivalent is $25 and rate is 5% annually
The final value should be
A=P(1+ r/n) ^nt
amount (the initial amount you borrow or deposit)
= annual rate
of interest (as a decimal)
= number of
years the amount is deposited or borrowed for.
= amount of
money accumulated after n years, including interest.
= number of times
the interest is compounded per year
=25 x (1.05)^5
The value will be
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