Monte Corporation just paid a dividend of $4.25 and has an expected growth rate of 15% for the foreseeable future,if the discount rate is 18% what is the appropriate stock price today?

Name: Monte Corporation just paid a dividend of $4.25 and has an expected growth rate of 15% for the foreseeable future,if the discount rate is 18% what is the appropriate stock price today?
Brand: Quizplus
Rating: 4.9 (50 reviews)

Question

Quizplus · Accepted Answer

g= 0.15 D₀= 4.25 D₁= 4.89 r= 0.18 P₀= D₁/(r-g) P₀= 162.92

Monte Corporation Just Paid a Dividend of $4