# Business question: What should the stock price per share be in 5 years?

Anonymous
account_balance_wallet \$5

### Question Description

a firms 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?

malcolmpc
School: Cornell University

31.91

A = P(1 + r/n)nt

Where:

• A = Accrued Amount (principal + interest)
• P = Principal Amount
• I = Interest Amount
• R = Annual Nominal Interest Rate in percent
• r = Annual Nominal Interest Rate as a decimal
• r = R/100
• t = Time Involved in years, 0.5 years is calculated as 6 months, etc.
• n = number of compounding periods per unit t; at the END of each period
A = 25(1 + .05/1)^1*5

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Review

Anonymous
Excellent job

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