Zuma Corporation just paid a dividend of $5.23 and has an expected growth rate of 5% for the foreseeable future,if the discount rate is 17% what is the appropriate stock price today?

Name: Zuma Corporation just paid a dividend of $5.23 and has an expected growth rate of 5% for the foreseeable future,if the discount rate is 17% what is the appropriate stock price today?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

g= 0.05 D₀= 5.23 D₁= 5.49 r= 0.17 P₀= D₁/(r-g) P₀= 45.76

Zuma Corporation Just Paid a Dividend of $5