Find the best solutions to your questions at Westonci.ca, the premier Q&A platform with a community of knowledgeable experts. Discover comprehensive answers to your questions from knowledgeable professionals on our user-friendly platform. Connect with a community of professionals ready to provide precise solutions to your questions quickly and accurately.
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
We hope you found what you were looking for. Feel free to revisit us for more answers and updated information. Thank you for your visit. We're dedicated to helping you find the information you need, whenever you need it. We're glad you chose Westonci.ca. Revisit us for updated answers from our knowledgeable team.