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    calculate stock value from dividends

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    Firm X just paid an annual dividend of $1.50 and is expected to pay annual dividends of $1.65 and $2.805 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 5 percent per year. What is the value of this stock today if the required return is 13 percent?

    1. $29.56

    2. $29.97

    3. $30.29

    4. $32.06

    5. $32.49

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    https://brainmass.com/business/beta-and-required-return-of-a-project/calculate-stock-value-dividends-190833

    Solution Preview

    Stock Value
    Firm X just paid an annual dividend of $1.50 and is expected to pay annual dividends of $1.65 and $2.805 per share the next two years, respectively. After that, the firm expects to maintain a constant dividend growth rate of 5 percent per year. What is ...

    Solution Summary

    This solution is comprised of a detailed explanation to answer what is the value of this stock today if the required return is 13 percent.

    $2.19

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