Lepric Corp. paid a dividend of $3.23 on its common stock at the end of last...

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Lepric Corp. paid a dividend of $3.23 on its common stock at the end of last year. Dividends are expected to grow at a consta

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Answer 1

Answer #1

Ans $ 84.79

P0 =	Price of Share
D1 =	Current Dividend
Ke =	Cost of Equity
g =	growth rate

P0 =	D1 / (Ke - g)
P0 =	3.3915 / (9%- 5%)
P0 =	84.79


D1 =	D0* (1 + g)
D1 =	3.23* (1 + 5.00%)
D1 =	3.3915

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Answer 2

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Lepric Corp. paid a dividend of $3.23 on its common stock at the end of last...