Ask Question
19 September, 15:32

Stoneheart Group is expected to pay a dividend of $2.93 next year. The company's dividend growth rate is expected to be 4.3 percent indefinitely and investors require a return of 10.5 percent on the company's stock. What is the stock price

+2
Answers (1)
  1. 19 September, 15:48
    0
    Answer: $47.26

    Explanation:

    Stock price = Dividend / (Required return - Dividend growth rate)

    P0 = $2.93 / (0.105 - 0.043)

    = $2.93 / (0.062)

    =$47.26
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Stoneheart Group is expected to pay a dividend of $2.93 next year. The company's dividend growth rate is expected to be 4.3 percent ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers