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

label Business
account_circle Unassigned
schedule 1 Day
account_balance_wallet $5

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?

Dec 16th, 2015

Thank you for the opportunity to help you with your question!


A = P(1 + r/n)nt


  • 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

Please let me know if you need any clarification. I'm always happy to answer your questions.
Dec 16th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
Dec 16th, 2015
Dec 16th, 2015
Sep 22nd, 2017
Mark as Final Answer
Unmark as Final Answer
Final Answer

Secure Information

Content will be erased after question is completed.

Final Answer