Find the current dividend on a stock, given that the required return is 9 percent, the...
Find the current dividend on a stock, given that the required return is 9 percent, the dividend growth rate is 6 percent, and the stock price is $50 per share.
Homework Answers
P0 = D0(1 + g) / (r - g)
$50 = D0(1.06) / (0.09 - 0.06)
$50 = D0(1.06) / 0.03
D0 = ($50 × 0.03) / 1.06
D0 = $1.42
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