A stock just paid a dividend of Do = $1.50. The required rate of return is...

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A stock just paid a dividend of Do = $1.50. The required rate of return is...

A stock just paid a dividend of Do = $1.50. The required rate of return is rs=15.0%, and the constant growth rate is g=4.0%. What is the current stock price?

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Answer 1

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Do=1.50 Required return (Re) = 15). growth (g) = 4% Corrent stock Price = Doll+g). Re-g = 1.50 (1 7:04) 015-.04 $ 14.18 Answe

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