Calculate the present value of this stock what will be the


Outback Outfitters is expected to pay a dividend (D1) of $1.00 next year, with an expected constant growth in dividends of 5%. The required rate of return is 11%.

  • Calculate the present value of this stock.
  • What will be the new price of this stock if the discount rate rises to 12%?
  • What will be the new price of this stock if the discount rate falls to 10%?

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Finance Basics: Calculate the present value of this stock what will be the
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