Register
Symon's Suppers Co. has announced that it will pay a dividend of $4.25 per share one year from today. Additionally, the company expects to increase its dividend by 4.5 percent annually. The required return
194k views
4 votes
Symon's Suppers Co. has announced that it will pay a dividend of $4.25 per share one year from today. Additionally, the company expects to increase its dividend by 4.5 percent annually. The required return on the company's stock is 10.7 percent. What is the current share price

User Naumcho
by
4.9k points

1 Answer

0 votes

Answer:

$68.55

Step-by-step explanation:

The computation of the current share price is shown below:

Current price = Today dividend price per share ÷ (Required rate of return-Growth rate)

= $4.25 ÷ (0.107-0.045)

=$68.55

We simply applied the above formula after considering all the three items given in the question so that the correct value could come

User SBirthare
by
5.3k points
Ask a Question
Welcome to QAmmunity.org, where you can ask questions and receive answers from other members of our community.

6.0m questions

7.8m answers

Other Questions

What are some ways you can save on car insurance?
_____ reminds customers and clients that they made a good choice in selecting a company with which to do business, or it reminds them of the good qualities of their purchase.​
Demonstrate how binomial nomenclature is related to classification systems by identifying the genus name and the specific name of the domestic cat felis catus
The dark printed words on the page of a book are easily read because they are printed on a light ground. this is an example of the principle of ____________.
On august 1 the darius co. purchased a photocopy machine for $8,000. the estimated annual depreciation on the machine is $1,680. if the company prepares annual financial statements on december 31, the
Link Copied!