Find current stock price if equired rate of return is given


Constant growth: Reco Corp. is expected to pay a dividend of $2.25 next year. The forecast for the stock price a year from now is $37.50. If the required rate of return is 14 percent, what is the current stock price? Assume constant growth.

Solution Preview :

Prepared by a verified Expert
Finance Basics: Find current stock price if equired rate of return is given
Reference No:- TGS0672233

Now Priced at $5 (50% Discount)

Recommended (91%)

Rated (4.3/5)