Problemthomas brothers is expected to pay a 1 per share, Ask an Expert

Accounting

Problem:

Thomas Brothers is expected to pay a $1 per share dividend at the end of the year (that is, D1 = $1). The dividend is expected to grow at a constant rate of 10% a year. The required rate of return on the stock, rs, is 19%.

Required:

Question: What is the stock's current value per share?

Note: Please show basic calculation.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91172141

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