Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year (i.e., D1=$0.50). The dividend is expected to grow at a constant rate of 7 percent a year. The required rate of return on the stock, rs, is 15 percent. What is the value per share of the company's stock?© BrainMass Inc. brainmass.com March 4, 2021, 6:06 pm ad1c9bdddf
Po= Div1/ (r-g)
where Po is the share price
Div1 = ...
The share price is calculated using Dividend Discount Model.