Homework Answers
Current price = $ 60
Dividend = $ 2.40
Growth rate = 8%
Required rate = 12%
According to dividend growth model
Price = $ 60
Thus, the stock is at par. That is neither under priced nor over priced. Hence, it is a good buy.
Please contact if having any query will be obliged to you for your generous support. Please help me it mean aot to me. Thank you.
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