Constant growth valuation-what is the stocks current value


Constant growth valuation

Tresnan Brothers is expected to pay a $1.5 per share dividend at the end of the year (i.e., D1 = $1.5). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, rs, is 19%. What is the stock's current value per share?

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Financial Management: Constant growth valuation-what is the stocks current value
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