Explore BrainMass

Explore BrainMass

    How to calculate Present Value

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

    Casino Inc. is expected to pay a dividend of $3 per share at the end of year 1 (D1) and these dividens are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 18%, what is the current value of the stock today. Please show calculation.

    © BrainMass Inc. brainmass.com June 4, 2020, 3:02 am ad1c9bdddf
    https://brainmass.com/business/capital-budgeting/calculate-present-value-495537

    Solution Summary

    Casino Inc. is expected to pay a dividend of $3 per share at the end of year 1 (D1) and these dividens are expected to grow at a constant rate of 6% per year forever. If the required rate of return on the stock is 18%, what is the current value of the stock today. Please show calculation.

    $2.19

    ADVERTISEMENT