Unique Stores common stock pays a constant annual dividend of $1.75 a share. What is the value of this stock at a discount rate

Question

3 years ago

11

of 13.25 percent?

1 answer:

tatyana61 [14] · Answer 1 · 2022-09-07T07:02:04+03:00

Answer:

the value of the stock is $13.21 per share

Explanation:

The computation of the value of the stock is shown below:

The Value of the stock is

= Constant annual dividend ÷ discount rate

= $1.75 ÷ 0.1325

= $13.21 Per share

Hence, the value of the stock is $13.21 per share

We simply applied the above formula so that the correct value could come

And, the same is to be considered