If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is 5%. What is the stock price of this share? We were given this formula: Ps = (D / Ir%)* 100% The formula of the shares’ stock price : Ps- stock price; D – the dividend rate measured in money; Ir – the interest rate in %

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Chapter1: Investments: Background And Issues
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Q: If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is 5%. What is the stock price of this share?

We were given this formula: 

Ps = (D / Ir%)* 100%

The formula of the shares’ stock price : Ps- stock price; D – the dividend rate measured in money; Ir – the interest rate in %

 

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