Question
Constant growth valuation Thomas Brothers is expected to pay a $1.6 per share dividend at the end of the year (that is, D1 = $1.6).
Constant growth valuation
Thomas Brothers is expected to pay a $1.6 per share dividend at the end of the year (that is, D1 = $1.6). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 15%. What is the stock's current value per share? Round your answer to two decimal places.
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Investment Science
Authors: David G. Luenberger
1st Edition
0195108094, 978-0195108095
