Question
CONSTANT GROWTH VALUATION Tresnan Brothers is expected to pay a $1.6 per share dividend at the end of the year (i.e., D 1 = $1.6).
CONSTANT GROWTH VALUATION
Tresnan Brothers is expected to pay a $1.6 per share dividend at the end of the year (i.e., 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 16%. What is the stock's current value per share? Round your answer to two decimal places.
$
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Personal Financial Planning
Authors: Randy Billingsley, Lawrence J. Gitman, Michael D. Joehnk
15th Edition
978-0357438480, 0357438485
