Fill This Form To Receive Instant Help

Help in Homework
trustpilot ratings
google ratings


Homework answers / question archive / Problem 0

Problem 0

Finance

Problem 0.02 constant Growth Thean Brothers is expected to pay a $3.00 per share dividend at the end of the year (D, $1.00). The dividend is expected to grow at a contattate of year. Theodoretum theo What is the stock's current per sharound your answer to the start

pur-new-sol

Purchase A New Answer

Custom new solution created by our subject matter experts

GET A QUOTE

Answer Preview

THE QUESTION IMAGE IS NOT VERY CLEAR

I COULD READ
1. EXPECTED TO PAY A 3.80 per share
2. GROW AT A CONSTANT RATE OF 6% A YEAR
3. THE REQUIRED RATE OF RETURN ON THE STOCK IS 8%

IF THE ABOVE IS NOT CORRECT, DO LET ME KNOW


Price=Expected Dividend/(required return-growth rate)
=3.80/(8%-6%)
=190.00