Show Numerically That Investment Horizon Has No Bearing on Current

Essay

Show numerically that investment horizon has no bearing on current stock price.For your illustration assume investment horizons of three versus five years and the following facts: the stock is correctly priced at $40.00, has a required return of 17 percent, a growth rate of 7 percent, and has just paid a $3.74 dividend.
Note: The variation between $40.01 and $39.98 is, of course, a rounding error.