Respuesta :
The estimated price of the Royal Ranch House stock in 5 years will be $18.60.
What will be the estimated price?
A stock is a share that is bought in a public company that gives the stockholders the ownership rights in the company. Stockholders are entitled to receive dividends when it is earned.
The price of the stock is a function of the number of years, current value of the stock and the current price of the stock.
Price of the stock in 5 years = value today x (1 + growth rate)^number of years
Price of the stock in 5 years = $18.11 x (1 + 0.053)^5
Price of the stock in 5 years = 18,11 x (1.0053^5)
Price of the stock in 5 years = $18.60
To learn more about stock price, please check: https://brainly.com/question/25403059
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