Question
26. Constant growth valuation Thomas Brothers is expected to pay a $2.4 per share dividend at the end of the year (that is, D1= $2.4).
26.
Constant growth valuation
Thomas Brothers is expected to pay a $2.4 per share dividend at the end of the year (that is, D1= $2.4). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 20%. What is the stock's current value per share? Round your answer to two decimal places.
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Foundations Of Finance
Authors: Arthur J Keown, John D Martin, J William Petty
7th Edition
0133370356, 9780133370355
