Expected Dividend = $0.75
Required Return = 10.50%
Growth Rate = 10.00%
Current Price = Expected Dividend / (Required Return - Growth
Rate)
Current Price = $0.75 / (0.1050 - 0.10)
Current Price = $0.75 / 0.0050
Current Price = $150
So, current stock price is $150.00
A stock is expected to pay a dividend of $0.75 at the end of the year....
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