cascade industries inc. intends to pay a common stock dividend of $3.18 one year from today...
cascade industries inc. intends to pay a common stock dividend of $3.18 one year from today and the firm anticipates that the dividend will continue to grow at a rate of 2% per year indefinitely. if the firm has a 13% required rate of return, what is the current price per share of stock?
Homework Answers
Calculate the current stock price as follows:
Current stock price = expected dividend /(required return- growth rate)
Current stock price = $3.18/(13%-2%)
Current stock price = $3.18 / 11%
Current stock price = $28.91
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