BMW just paid an annual dividend of 2 per share. Management has promised shareholders to increase dividends at a constant rate of 10%. If the required return is 15%, what is the current price per share?

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter14: Capital Structure Management In Practice
Section: Chapter Questions
Problem 10P
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BMW just paid an annual dividend of 2 per share. Management has promised shareholders to increase dividends at a constant rate of 10%. If the required return is 15%, what is the current price per share? 

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