A stock is expected to pay a dividend of $0.75 at the end of the year....
A stock is expected to pay a dividend of $0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price?
Homework Answers
Hi,
Please find the answer as follows:
Current Price = D1/(Ke-g)
= .75/(.105 - .064) = 18.292 or 18.29
Answer is $18.29
Thanks.
Add Answer to:
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