A stock just paid dividend of $2.30. Dividend is expected to grow at 6%. If the required

Question:

A stock just paid dividend of $2.30. Dividend is expected to grow at 6%. If the required rate of return is 11 percent, what should be the current price of the stock?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...