MENSA Int'l just paid a dividend of $1.25. Their growth rate in dividends is 10% and...
MENSA Int'l just paid a dividend of $1.25. Their growth rate in dividends is 10% and you require a rate of return of 10%, what is the value of this stock today?
Homework Answers
Value of this stock today = D0(1 + g) / (r - g)
Value of this stock today = $1.25(1.10) / (0.10 - 0.10)
Value of this stock today = $1.375 / 0
Value of this stock today = $0
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