Answer:
$13
Explanation:
The current value of the stock can be determined using the constant growth dividend model
according to the constant dividend growth model
price = d1 / (r - g)
d1 = next dividend to be paid
r = cost of equity
g = growth rate
(1 x 1.04) / (0.12 - 0.04) = 13
Answer:
Current stock price = $24.23
Explanation:
Stock price under Discounted Model:
P0 = D1 \div(Ke - g)
P0 = Current Market price of the share
g = Growth rate = 5.0%
Ke = Cost of equity = 11.5% p.a
D1 = Expected dividend = $1.50 (1 + 0.05)= $1.575
P0 = $1.575 / (11.50% - 5.0%)
Current stock price = $24.23
Is there more to this question??? What do you need to know??
<span>Labor productivity is the ability to earn the highest amount of profit for a company for an employees time. Such as a chef, cooking 10 meals in an hour will bring in 100 dollars for those 10 meals and only gets paid 10 dollars. His labor productivity is earning the company 90 dollars for his time.</span>
