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    Stock valuation

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    Constant growth stock

    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 ABCs common stock?

    © BrainMass Inc. brainmass.com October 9, 2019, 11:46 pm ad1c9bdddf
    https://brainmass.com/business/accounting/stock-valuation-267458

    Solution Summary

    The solution explains how to calculate the stock price using constant growth model

    $2.19