Gerald's Travel Service just paid $1.79 to its shareholders as the annual dividend. Simultaneously, to company announced that future dividends will be increased by 3.2 %. If you require a 10.5% rate of return, how much are you willing to pay to purchase one share of this stock?© BrainMass Inc. brainmass.com October 15, 2018, 6:51 am ad1c9bdddf - https://brainmass.com/business/real-options-valuation/details-regarding-stock-valuation-173002
The price will be the present value of all dividends, since the growth rate in ...
The solution explains how to calculate the price of stock.