A stock’snext dividend is expected to be $1.5. The required rate of return on stock is16.3%, and the expected constant growth rate is 5.6%. What is the stock’scurrent price?Note: Enter your answer rounded off to two decimal points.Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.
A stock’snext dividend is expected to be $1.5. The required rate of return on stock is16.3%, and the expected constant growth rate is 5.6%. What is the stock’scurrent price?Note: Enter your answer rounded off to two decimal points.Do not enter $ or comma in the answer box. For example, if your answer is$12.345 then enter as 12.35 in the answer box.
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
Section: Chapter Questions
Problem 1PS
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Question
A stock’s
next dividend is expected to be $1.5. The required
16.3%, and the expected constant growth rate is 5.6%. What is the stock’s
current price?
Note: Enter your answer rounded off to two decimal points.
Do not enter $ or comma in the answer box. For example, if your answer is
$12.345 then enter as 12.35 in the answer box.
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