Question
Problem 9-2 Constant growth valuation Thomas Brothers is expected to pay a $2.4 per share dividend at the end of the year (that is, D
Problem 9-2 Constant growth valuation
Thomas Brothers is expected to pay a $2.4 per share dividend at the end of the year (that is, D1= $2.4). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 14%. What is the stock's current value per share? Round your answer to two decimal places.
$
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Multinational Business Finance
Authors: David K. Eiteman, Arthur I. Stonehill, Michael H. Moffett
15th edition
