Join IDNLearn.com to access a wealth of knowledge and get your questions answered by experts. Get step-by-step guidance for all your technical questions from our knowledgeable community members.
Sagot :
Answer:
PV= $44.51
Explanation:
Giving the following information:
Dividen 1= $3
Discount rate= 10.74% = 0.1074
Growth rate= 4% = 0.04
To calculate the price of the stock today, we need to use the following formula:
PV= D1 / (i - g)
PV= 3 / (0.1074 - 0.04)
PV= 3 / 0.0674
PV= $44.51
Your participation means a lot to us. Keep sharing information and solutions. This community grows thanks to the amazing contributions from members like you. IDNLearn.com is your go-to source for accurate answers. Thanks for stopping by, and come back for more helpful information.