al dividend per share of $2.10. The risk-free rate is 7% a remain at $2.10, what is the value of the stock? (Roune

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 21MC
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A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7% and the risk premium for this stock is 4%. If the
annual dividend is expected to remain at $2.10, what is the value of the stock? (Round your answer to 2 decimal places.)
Stock value
Transcribed Image Text:Required: A common stock pays an annual dividend per share of $2.10. The risk-free rate is 7% and the risk premium for this stock is 4%. If the annual dividend is expected to remain at $2.10, what is the value of the stock? (Round your answer to 2 decimal places.) Stock value
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