Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by 6.4% per year, what is its price per share if the firm's equity cost of capital is 11.1%? The price per share is $ (Round to the nearest cent.)

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
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Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by 6.4% per
year, what is its price per share if the firm's equity cost of capital is 11.1%?
The price per share is $ (Round to the nearest cent.)
Transcribed Image Text:Summit Systems will pay a dividend of $1.48 this year. If you expect Summit's dividend to grow by 6.4% per year, what is its price per share if the firm's equity cost of capital is 11.1%? The price per share is $ (Round to the nearest cent.)
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