Explore BrainMass
Share

Explore BrainMass

    Dividend and price of stock

    This content was COPIED from BrainMass.com - View the original, and get the already-completed solution here!

    A company plans to retain and reinvest all of the earnings for the next 30 years. Starting in year 31, the company will begin to pay a $12.00 per share dividend. The dividend will not subsequently change. Given a required return of 15%, what should the stock sell for today?

    © BrainMass Inc. brainmass.com October 9, 2019, 5:20 pm ad1c9bdddf
    https://brainmass.com/business/accounting-for-corporations/54770

    Solution Summary

    This provides the steps to compute the Dividend and price of stock

    $2.19