Header Motor, Inc., paid a $ 3.92 3.92 dividend last year. At a constant growth rate of 6 6 percent, what is the value of the common stock if the investors require a 8 8 percent rate of return? The value of the common stock is $ nothing . (Round to the nearest cent.)
Price = recent dividend* (1 + growth rate )/(cost of equity - growth rate) |
Price = 3.92 * (1+0.066) / (0.088 - 0.066) |
Price = 189.94 |
Header Motor, Inc., paid a $ 3.92 3.92 dividend last year. At a constant growth rate...
vuormal ) Question Help (Related to Checkpoint 10.1) (Common stock valuation) Header Motor, Inc., paid a $3.92 dividend last year. At a constant growth rate of 6 percent, what is the value of the common stock if the investors require a 8 percent rate of return? The value of the common stock is S (Round to the nearest cent.) Enter your answer in the answer box and then click Check Answer
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