Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $0.25 a...continues
Homework Answers
Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $0.25 at the end of each of the next16 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.5 percent,forever. The appropriate rate of return on the stock is 12 percent, compounded quarterly.
What is the current stock price = 0.388 DOLLARS -ANSWER
= 0.25 /(12% -1.5% ) =2.38
current stock price =2.38 X 1.12 ^16 =0.388
current value=2.38/1.12^16=2.38/6.13=$.388 ans
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Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $0.25 a...continues
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