ABC, Inc. just paid dividend of $5.21. The dividends are expected to grow at 7.63% each year forever. The required rate of return on the stock is 11.01%. What is today's price of the stock?
Enter your answer rounded off to two decimal points. Do not enter $ or comma in the answer box.
Current price=D1/(Required return-Growth rate)
=(5.21*1.0763)/(0.1101-0.0763)
which is equal to
=165.90(Approx).
ABC, Inc. just paid dividend of $5.21. The dividends are expected to grow at 7.63% each...
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