Problemthomas brothers is expected to pay a 18 per share, Ask an Expert

Finance

Problem:

Thomas Brothers is expected to pay a $1.8 per share dividend at the end of the year (that is, D1 = $1.8). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 14%.

Required:

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

Note: Provide support for your rationale.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148508

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