The last dividend of Delta, Inc. was $4.81, the growth rate of dividends is expected to...
The last dividend of Delta, Inc. was $4.81, the growth rate of dividends is expected to be 3.98 percent, and the required rate of return on this stock is 10.97 percent. What is the stock price according to the constant growth dividend model?
Round the answer to two decimal places.
Homework Answers
Current price=D1/(Required return-Growth rate)
=(4.81*1.0398)/(0.1097-0.0398)
which is equal to
=$71.55(Approx).
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