A stock is expected to pay a dividend of $1.74 at the end of the year. The required rate of return is rs = 11.32%, and the expected constant growth rate is g = 3.0%. What is the stock's current price?

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter7: Valuation Of Stocks And Corporations
Section7.4: Valuing Common Stocks
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A stock is expected to pay a dividend of $1.74 at the end of the year. The required rate of return is rs = 11.32%, and the expected constant growth rate is g = 3.0%. What is the stock's current price?

 

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