The appropriate discount rate for pharsaluss stock is 93


1. What is the future value of $1,720 in 14 years assuming an interest rate of 7.25 percent compounded annually?

2. Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.23 per share. This dividend is expected to grow at a rate of 3.1 percent per year forever. The appropriate discount rate for Pharsalus's stock is 9.3 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).

Request for Solution File

Ask an Expert for Answer!!
Financial Management: The appropriate discount rate for pharsaluss stock is 93
Reference No:- TGS02702831

Expected delivery within 24 Hours