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This year, Hope corporation paid a dividend of $0.50 per share. The company expect dividends to...

This year, Hope corporation paid a dividend of $0.50 per share. The company expect dividends to increase by 4.5% each year forever. If investors require a return of 12%, what is the value of a Hope Corporation share today?

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Just paid dividend of Hope corporation , D0 - S0.50 Per share Growth rate in dividends. g 45% Required rate of return : RR 12% DI-DO * ( 1 + g) $0.50 * ( 1 + 4.5% )-$0.5225 Per share Value of Hope corporation share today, POD1 /(RR -g) = $0.5225/ (12%-45%) S0.5225/7.5% - $6.966667 Per share $6.97 Per share (Rounded)

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