Question
Pharsalus Inc. just paid a dividend (i.e., D0) of $ 4.09 per share. This dividend is expected to grow at a rate of 5.4 percent
Pharsalus Inc. just paid a dividend (i.e., D0) of $ 4.09 per share. This dividend is expected to grow at a rate of 5.4 percent per year forever. The appropriate discount rate for Pharsalus's stock is 14.2 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).
SIMILAR QUESTION W/ SOLUTION:
Pharsalus Inc. just paid a dividend of $ 4.24 per share. This dividend is expected to grow at a rate of 3.4 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.4 percent. What is the price of the stock? Enter your answer to the nearest penny. Do not use the $ sign in your answer.
Answer: 43.84
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Financial Management Theory And Practice
Authors: Eugene Brigham, Michael Ehrhardt, Jerome Gessaroli, Richard Nason
3rd Canadian Edition
017658305X, 978-0176583057
