Explore BrainMass

Explore BrainMass

    Calculating current price of a dividend paying stock

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

    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
    https://brainmass.com/business/accounting/calculating-current-price-of-a-dividend-paying-stock-337545

    Solution Summary

    Solution depicts the steps to calculate current price of a dividend paying stock with constant growth.

    $2.19

    ADVERTISEMENT