Pharmecology is about to pay a dividend of 190 per share, Ask an Expert

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Pharmecology is about to pay a dividend of $1.90 per share. It’s a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 3.00% per year. The nominal cost of capital is 9.75%.

a. What is Pharmecology’s current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current stock price $

b. What would be Pharmecology’s current stock price using forecasted real dividends and a real discount rate? (Do not round intermediate calculations. Round your answer to 2 decimal places.)

Current stock price $

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M91645680

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