Jeudy Corp recently paid a dividend of 2.44. If you expect dividends to grow indefinitely at...
Jeudy Corp recently paid a dividend of 2.44. If you expect dividends to grow indefinitely at a rate of 6%, and, due to the perceived riskiness of Jeudy Corp equity, you require a return of 17%, what are you willing to pay for a share of stock?
Homework Answers
Current price=D1/(Required return-Growth rate)
=(2.44*1.06)/(0.17-0.06)
=$23.51(Approx).
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