question archive You are considering buying a stock that will pay a dividend of $2
You are considering buying a stock that will pay a dividend of $2
Subject:FinancePrice:2.86 Bought11
You are considering buying a stock that will pay a dividend of $2.3 next year. The dividend is expected to grow at 5.6% per year forever. The interest rate is 10.6%. What is the price of this stock today in $ dollars)? $
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Current stock price: Next year's dividend / ( Interest rate - Growth rate)
Current stock price: $ 2.3 / ( 0.106 - 0.056)
Current stock price: $ 2.3 / 0.05
Current stock price: $ 46
