Question

Unique Stores common stock pays a constant annual dividend of $1.75 a share. What is the value of this stock at a discount rate of 13.25 percent?

Answer 1

the value of the stock is $13.21 per share

Step-by-step explanation:

The computation of the value of the stock is shown below:

The Value of the stock is

= Constant annual dividend ÷ discount rate

= $1.75 ÷ 0.1325

= $13.21 Per share

Hence, the value of the stock is $13.21 per share

We simply applied the above formula so that the correct value could come

And, the same is to be considered