Common stock value related problem


Question: Friedman Steel Company will pay a dividend of $1.50 per share in the next 12 months (D1). The required rate of return (Ke) is 10 percent and the constant growth rate is 5 pecent.

A) Compute Po.

Can you please show me the steps so I can use this as a formulaic template to solve other comperable problems that I have to solve?

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Accounting Basics: Common stock value related problem
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