Problemthe starr co just paid a dividend of 215 per share, Ask an Expert

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Problem

The Starr Co. just paid a dividend of $2.15 per share on its stock. The dividends are expected to grow at a constant rate of 5 percent per year, indefinitely.

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Question: If investors require a return of 11 percent on the stock, what is the current price?

Note: Be sure to show how you arrived at your answer.

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Category:- Basic Finance
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