The last dividend paid by ABC Company was $2.00. ABC's growth rate is expected to be a constant 4 percent. ABC's required rate of return on equity (ks) is 9 percent. What is the current price of ABC common stock?© BrainMass Inc. brainmass.com June 4, 2020, 12:25 am ad1c9bdddf
Solution depicts the steps to calculate current price of a dividend paying stock with constant growth.