Find out the constant growth divident model


Problem:

The last dividend of Gamma , Inc was $7.55, the growth rate of dividends is expected to be 4.76%, and the required rate of return on this stock is 14.86%.

Required:

Question: What is the stock price according to the constant growth divident model (Gordon model)?

Note: Please show the work not just the answer.

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Finance Basics: Find out the constant growth divident model
Reference No:- TGS0881460

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