Company x has 100 shares outstanding it earns 1000 per year


Company X has 100 shares outstanding. It earns $1,000 per year and expects to pay all of it as dividends. If the firm expects to maintain this dividend forever, calculate the stock price today. (The required rate of return is 10%.)

Solution Preview :

Prepared by a verified Expert
Finance Basics: Company x has 100 shares outstanding it earns 1000 per year
Reference No:- TGS02216287

Now Priced at $10 (50% Discount)

Recommended (95%)

Rated (4.7/5)