The dividends are expected to grow at a constant rate of 6


Banya Inc. just paid a dividend of $1.00 per share on its stock. The dividends are expected to grow at a constant rate of 6 percent indefinitely. If investors require 12 percent annual return on Banya Stock, what would the current price be?

Solution Preview :

Prepared by a verified Expert
Finance Basics: The dividends are expected to grow at a constant rate of 6
Reference No:- TGS02522639

Now Priced at $10 (50% Discount)

Recommended (97%)

Rated (4.9/5)