A php 300 per share dividend was paid by a certain stock. The dividend is estimated to grow at 4.75% per year until further notice. What is the price of the stock today if the required return is 8.75%
The price of a stock is calculated as
Therefore, if a stock paid 300 in dividends and the dividends are expected to grow at the rate of 4.75% per year, the price of the stock if the rate of return is 8.75% is equal to
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