Question
Problem 9-2 Constant growth valuation Tresnan Brothers is expected to pay a $1.8 per share dividend at the end of the year (i.e., D1= $1.8).
Problem 9-2 Constant growth valuation
Tresnan Brothers is expected to pay a $1.8 per share dividend at the end of the year (i.e., D1= $1.8). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 17%. What is the stock's current value per share? Round your answer to two decimal places.
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Advanced Financial Accounting
Authors: Richard Lewis, David Pendrill
7th Edition
0273658492, 978-0273658498
