A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.

A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...

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A stock trading at $55.00 per share paid an annual dividend of $1.35 per share over the last 12 month
period. The dividend growth is expected to be 7% annually for the foreseeable future. What is the
estimated fair value of the stock if your required rate of return is 9%? Solve it in one cell.

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