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Consider the following information which relates to a given company: Item 2019 Value Earnings Per Share $6.56 Price Per Share (Common Stock) $39.06 Book Value
Consider the following information which relates to a given company: Item 2019 Value Earnings Per Share $6.56 Price Per Share (Common Stock) $39.06 Book Value (Common Stock Equity) $64.2 million Total Common Stock Outstanding 2.55 million Dividend Per Share $4.9 Analysts expect that the company could maintain a constant annual growth rate in dividends per share of 5.78% in the future, or possibly 7.65% for the next 2 years and 5.93% thereafter. In addition, it is expected that the risk of the firm, as measured by the risk premium on its stock, to increase immediately from 8.95% to 10.69%. Currently, the risk-free rate is 5.61%. Required: Assuming no growth in future dividends, and a required return of 16.15%, find the value per share of the firm's stock
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