A share of stock just recently released a dividend for $0.46 per share, given an expected...

Question

Question

A share of stock just recently released a dividend for $0.46 per share, given an expected dividend growth rate of 9.50%, and

business finance

Answer 1

Answer #1

Current price=D1/(Discount rate-Growth rate)

=(0.46*1.095)/(0.219-0.095)

which is equal to

=$4.06(Approx).

Answer 2

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