Rocket Co

Business Sep 14, 2020

Rocket Co. has just paid a dividend of $1.15 per share. The firm pays annual dividends. It is expected by analysts that the firm's earnings will grow by 8.2% per year over next six years. After that, the earnings will most likely grow at the current industry average of 5.5% per year. Analysts do not expect any changes in the payout ratio of the firm. The cost of capital is 11%. The today's share price is closest to (nearest cents):
Select one:
a. $23.36
b. $24.25
c. $27.32
d. $25.24