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Alex73 [517]
3 years ago
14

Tresnan Brothers is expected to pay a $3.00 per share dividend at the end of the year (i.e., D1 = $3.00). The dividend is expect

ed to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 13%. What is the stock's current value per share? Round your answer to two decimal places.
Business
1 answer:
Mama L [17]3 years ago
5 0

Answer:

Tresnan Brothers Current stock value per share is $60

Explanation:

Using the formula

Stock Price = D1 / (r - g)

Stock Price = $3 / (13%-8%)

Stock Price = $3 / 5%

Stock Price = $60

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The options that complete the question are:

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We can actually deduce here that such unintended consequences of an economic change that are not immediately identifiable but are felt only with time are known in economics are known to be secondary effects.

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