If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is 5%. What is the stock price of this share? We were given this formula: Ps = (D / Ir%)* 100% The formula of the shares’ stock price : Ps- stock price; D – the dividend rate measured in money; Ir – the interest rate in %

Corporate Fin Focused Approach
5th Edition
ISBN:9781285660516
Author:EHRHARDT
Publisher:EHRHARDT
Chapter14: Distributions To Shareholders: Dividends And Repurchases
Section: Chapter Questions
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Q: If the nominal value of a share is 15,000 rubles, the dividend rate is 8%, and the interest rate is 5%. What is the stock price of this share?

We were given this formula: 

Ps = (D / Ir%)* 100%

The formula of the shares’ stock price : Ps- stock price; D – the dividend rate measured in money; Ir – the interest rate in %

 

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