Ans $ 2.50
P0 = | Price of Share |
D1 = | Current Dividend |
Ke = | Cost of Equity |
g = | growth rate |
P0 = | D1 / (Ke - g) |
33.25 = | D1 / (11.7%- 4.5%) |
33.25 = | D1 / 7.2% |
D1 = | 33.25 * 7.2% |
D1 = | 2.39 |
D2 = | D1 * (1 + g) |
D2 = | 2.39 * (1 + 4.5%) |
D2 = | 2.50 |
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