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Based on the dividend paid, the dividend growth rate, and the required return, the price of the stock is $51.20
<h3>What is the price of the stock?</h3>
This can be solved by the Gordon Growth Model:
Price of stock = Next dividend / (Required return - growth rate)
Solving gives:
= (3.20 x 1.04) / (0.105 - 0.04)
= 3.328 / 0.065
= $51.20
Question is:
Find the price of the stock
Find out more on the Gordon Growth Model at brainly.com/question/18760464
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