What is the current price of a share of stock when last year's dividend was P3.00, thegrowth rate is 6 percent, and the investor's required rate of return is 12 percent?P50.00О Р25.00P26.50P53.00

This question is based on dividend growth model So P(Price of stock) = D1/(K-g) g= growth rate…

Answered: What is the current price of a share of…

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 10P

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What is the current price of a share of stock when last year's dividend was P3.00, the growth rate is 6 percent, and the investor's required rate of return is 12 percent? O P50.00 O P25.00 O P26.50 O P53.00