You're analyzing the stock of a certain company. The most recent dividend paid was $5...

50.1K

Verified Solution

Question

Finance

You're analyzing the stock of a certain company. The most recent dividend paid was $5 dollars per share. The company's discount rate is 7%, and the firm is expected to grow at 5% per year forever.

What should be the stock price today?

Enter your answer in dollars, rounded to the nearest cent.

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students