# How to calculate Present Value

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.

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#### 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