Suppose that in 1984 the total output in a single-good economy was 7,000 buckets of chicken. Also assume that in 1984 each bucke
1 answer:
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Answer:
$66.67
Explanation:
Using dividend growth model
P0 =
Where P0 = Current market price of share
D1 = Dividend at year end
Ke = Expected return
g = growth percentage
Since D1 has been provided we will take D1 else formula is D0 + g for calculating D1
Putting the values as provided we have
P0 =
= = $66.67