Barbu Cok Submit to ??????????? Question 15 1515 Pation recently purchased 500 shares of Flat common stock for $3,000

Finance Nov 03, 2020

Barbu Cok Submit to ??????????? Question 15 1515 Pation recently purchased 500 shares of Flat common stock for $3,000. The stock is expected to provide in un cash flow of dividends of 548 indefinitely Among discount of 15 percent, what is the value of the stock inter your answer in 2 decimal places ClickButto certo the went Bere and Sub MacBook Air ANTA

Expert Solution

Since dividend areperpetual hencetheir present value will bevalue of share.

Value of share = Dividend/ Ke

= 48/0.13

= $369.23g

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