Microsoft Inc. paid $2 dividend last week. You expect the dividend to grow steadily at a rate of 5 percent per year. If the discount rate for the stock is 12 percent, at what price will the stock sell?© BrainMass Inc. brainmass.com October 24, 2018, 9:28 pm ad1c9bdddf
Use the dividend discount model
Price = D1/(Ke-g)
D1 is the ...
The solution explains how to calculate the price of stock using dividend discount model
Stock Valuation Methods
Discuss the various stock valuation methods and the relevant factors that affect the valuation process.
Which factor(s) have the most bearing on stock price?View Full Posting Details