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ANTONII [103]
3 years ago
13

Stoneheart Group is expected to pay a dividend of $3.27 next year. The company's dividend growth rate is expected to be 3.4 perc

ent indefinitely and investors require a return of 12.2 percent on the company's stock. What is the stock price
Business
1 answer:
shepuryov [24]3 years ago
7 0

Answer:

The stock price is $37.16

Explanation:

Dividend Valuation method is used to value the stock price of a company based on the dividend paid, its growth rate and rate of return. The price is calculated by calculating present value of future dividend payment.

Formula to calculate the value of stock

Price = Dividend / ( Rate or return - growth rate )

Price = $3.27 / ( 12.2% - 3.4% )

Price = $3.27 / 12.2% - 3.4%

Price = $3.27 / 8.8%

Price = $37.16

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2 years ago
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Hey There!:

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2 years ago
Pequeno Pesos Restaurants, Inc. is a chain of restaurants featuring authentic, affordable Mexican cuisine around the United Stat
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A. Information published by the U.S. Bureau of the Census that identifies which regions of the United States are experiencing the most rapid growth in Mexican-American population.

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The information published by the US Bureau about the population of Mexican citizens growing will help the restaurant identify the areas where it will find its most probable customers for the Mexican Cuisine.

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