Compute the current price of stock


Bayside will pay a dividend on common stock of $4.80 per share at the end of the year. The required return on common stock (Ke) is 13.2%. The firm has a constant growth rate of 7.2%.

Required:

Question: Compute the current price of stock (Po).

Note: Explain all steps comprehensively.

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Finance Basics: Compute the current price of stock
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