Thomas Brothers is expected to pay $0.50 a share (that is, D1 = $0.50). The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock, rs, is 15%. What is the stockâ??s current value per share?
I have tried to solve this on my financial calculator but am not sure I am doing it correctly. Please Help.© BrainMass Inc. brainmass.com October 10, 2019, 1:08 am ad1c9bdddf
The solution explains how to calculate the current value of stock using the constant growth valuation