Beta company's earnings and dividends per share are expected to grow
by 5% a year, next year's dividends is $10 and the market
capitalization rate is 8%. its growth will stop after year 4. in year
5 and afterward it will pay out all earnings as dividends. what is the
stock price?

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Request for Question Clarification by omnivorous-ga on 10 Aug 2005 20:59 PDT

Can't tell.  There's a critical piece of data missing.

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Clarification of Question by mojomabris-ga on 11 Aug 2005 08:04 PDT

What critical piece of data is missing?

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Request for Question Clarification by omnivorous-ga on 11 Aug 2005 08:49 PDT

Mojomabris --

Are there dividends paid THIS year -- or not?

Also, this is a stock price question based on dividend valuation. 
However, earnings could be $100 per share or only $10 per share.  One
could assume it's $10/share -- but if it's $100 per share (a more
likely case in the real world) there's a big jump in payouts in year
5.

Best regards,

Omnivorous-GA