Green Tech Solutions will pay a dividend on common stock of $2.50 per share at the end of the year. The required return on common stock (Ke) is 12% and the firm has a constant growth rate of 7%. What is the current price of the stock (PO)?

Green Tech Solutions will pay a dividend on common stock of $2.50 per share at the end of the year. The required return on common stock (Ke) is 12% and the firm has a constant growth rate of 7%. What is the current price of the stock (PO)?

Financial Management: Theory & Practice

16th Edition

ISBN:9781337909730

Author:Brigham

Publisher:Brigham

Chapter7: Corporate Valuation And Stock Valuation

Section: Chapter Questions

Problem 16MC: Assume that Temp Force is a constant growth company whose last dividend (D0, which was paid...

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Question

What is the current price of the stock on these financial accounting question?

Green Tech Solutions will pay a dividend on common stock of $2.50
per share at the end of the year. The required return on common stock
(Ke) is 12% and the firm has a constant growth rate of 7%. What is the
current price of the stock (PO)?

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