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Problem 0
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
Expert Solution
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
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