(Answered) A firms stock is expected to pay a dividend of 60 per share

Economics

A firm's stock is expected to pay a dividend of $60 per share this year. The firm currently has 100,000 shares of stock outstanding. Investors expect the dividend growth rate for the firm to be 3% annually, and they use a discount rate of 5% annually when estimating the firm's stock value.

A. What is your estimate of the value for 1 share of the firm's stock?

B. What is your estimate of the market value of the firm? Show work please

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Macroeconomics, Economics

Category:- Macroeconomics
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