Answered step by step
Verified Expert Solution
Link Copied!

Question

1 Approved Answer

Duke Energy Corporation (DUK) just paid an ansual dividend of 54.00 a share. The firm has been increasing the dividead by 3,748%(0.03,660%) annually. Calculate the

image text in transcribed
Duke Energy Corporation (DUK) just paid an ansual dividend of 54.00 a share. The firm has been increasing the dividead by 3,748%(0.03,660%) annually. Calculate the average dividend growth rate of dividends over the last seven years. Use that average dividend growth rate as the constant growth for dividends after the third year in the fisture. Using a discoant rate of 9.5 percent find the the current value of the Dake Energy stock aslag the nenconstant / constant growth formula. Do you find the current price to over or under valued

Step by Step Solution

There are 3 Steps involved in it

Step: 1

blur-text-image

Get Instant Access to Expert-Tailored Solutions

See step-by-step solutions with expert insights and AI powered tools for academic success

Step: 2

blur-text-image

Step: 3

blur-text-image

Ace Your Homework with AI

Get the answers you need in no time with our AI-driven, step-by-step assistance

Get Started

Recommended Textbook for

More Books

Students also viewed these Finance questions