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Problem 10-28 Common stock value [LO5] BioScience Inc. will pay a common stock dividend of $5.25 at the end of the year ( D 1

Problem 10-28 Common stock value [LO5]

BioScience Inc. will pay a common stock dividend of $5.25 at the end of the year (D₁). The required return on common stock (K_e) is 22 percent. The firm has a constant growth rate (g) of 10 percent.

Compute the current price of the stock (P₀). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current price

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