Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by 6.7% per year, what is its price per share if the firm's equity cost of capital is 11.4%? The price per share is $ (Round to the nearest cent.)
Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by 6.7% per year, what is its price per share if the firm's equity cost of capital is 11.4%? The price per share is $ (Round to the nearest cent.)
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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![Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by
6.7% per year, what is its price per share if the firm's equity cost of capital is 11.4%?
The price per share is $
(Round to the nearest cent.)](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F69087f6e-f5f0-40ef-81e6-0fcf0bd83200%2F4fdc8b1a-77eb-4b26-ab03-07bc7e54fa36%2Fz53dyg_processed.png&w=3840&q=75)
Transcribed Image Text:Summit Systems will pay a dividend of $1.61 this year. If you expect Summit's dividend to grow by
6.7% per year, what is its price per share if the firm's equity cost of capital is 11.4%?
The price per share is $
(Round to the nearest cent.)
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