Answer:
56.47% is the current share price
Explanation:
To solve this question, we use the mathematical approach.
First, we calculate the current share price =
$8.45*Present value of annuity factor(11.2%,13)
But before we can get the value for the current share price, we need the value for the present value of annuity factor.
Present value of annuity factor = Annuity[1-(1+interest rate)^-time period]/rate =
8.45[1-(1.112)^-13]/0.112=
= $8.45*6.682519757 = 56.47%