4. Mouser Industries' common stock paid $1.32 in dividend last year, and is expected to grow at anannual rate of 7% for the near future. What is the value of the stock if the current rate of return is 11%

As per the Constant Dividend growth model,Value of the stock = D0 x (1+g) / (r - g)whereD0 = Recent…

Answered: 4. Mouser Industries' common stock paid…

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 3P

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4. Mouser Industries' common stock paid $1.32 in dividend last year, and is expected to grow at an annual rate of 7% for the near future. What is the value of the stock if the current rate of return is 11%