4. If expected dividends grow at 4% and the appropriate discount rate is 6%, what is...
4. If expected dividends grow at 4% and the appropriate discount rate is 6%, what is the value of a stock with an expected dividend of $2.85? (Round your answer to 2 decimal places.) rev: 03_14_2017_QC_CS-82483 $71.25 $142.50 $213.75 $143.50
Homework Answers
Value of stock = D1 / required rate - growth rate
Value of stock = 2.85 / 0.06 - 0.04
Value of stock = 2.85 / 0.02
Value of stock = $142.50
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Question 39
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Question 39
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