Question
Calculate Growth Rate (g) Current Stock Price = D*(1+g)/(ke - g) 36 = 2.40*(1+g)/(12% - g) 4.32 - 36g = 2.40 + 2.40g g =
Calculate Growth Rate (g) Current Stock Price = D*(1+g)/(ke - g) 36 = 2.40*(1+g)/(12% - g) 4.32 - 36g = 2.40 + 2.40g g = (4.32 - 2.40)/(38.40) = 5%
Calculate Growth Rate (g)
Current Stock Price = D*(1+g)/(ke - g)
36 = 2.40*(1+g)/(12% - g)
4.32 - 36g = 2.40 + 2.40g
g = (4.32 - 2.40)/(38.40) = 5%
Where 4.32 came from? Please explain me resolution step by step of this equation
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Financial Accounting
Authors: David Spiceland
6th Edition
1265889716, 978-1265889715
