Van Buren currently expects to pay a year end dividend of $2 00 a share (D1 $2 00) Van Burens dividend is expected to grow at a constant rate of 5 a year, and its beta is 0 9 What is the current price of Van Burens stock ...

Computation of the Current Price of Van Buren Stock Where as D 1 2 Beta 0 ...

Van Buren currently expects to pay a year-end dividend of $2.00 a share (D1 = $2.00). Van

Question:

Van Buren currently expects to pay a year-end of $2.00 a share (D1 = $2.00). Van Buren’s is expected to grow at a constant rate of 5%a year, and its beta is 0.9. What is the current price of Van Buren’s stock?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...