A firm just paid a dividend of $4.58. The dividend is expected to grow at a constant rate of 4.94% forever and the required rate of return is 11.39%. What is the value of the stock?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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#30
A firm just paid a dividend of $4.58. The dividend is
expected to grow at a constant rate of 4.94% forever
and the required rate of return is 11.39%. What is the
value of the stock?
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Answer format: Currency: Round to: 2 decimal places.
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Transcribed Image Text:#30 A firm just paid a dividend of $4.58. The dividend is expected to grow at a constant rate of 4.94% forever and the required rate of return is 11.39%. What is the value of the stock? Submit Answer format: Currency: Round to: 2 decimal places. unanswered not_submitted Attempts Remaining: Infinity
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