Tresnan Brothers is expected to pay a $2.00 per share dividend at the end of the year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 7%. What is the stock's current value per share? Round your answer to the nearest cent.

Tresnan Brothers is expected to pay a $2.00 per share dividend at the end of the year (i.e., D1 = $2.00). The dividend is expected to grow at a constant rate of 5% a year. The required rate of return on the stock, rs, is 7%. What is the stock's current value per share? Round your answer to the nearest cent.

Intermediate Financial Management (MindTap Course List)

13th Edition

ISBN:9781337395083

Author:Eugene F. Brigham, Phillip R. Daves

Publisher:Eugene F. Brigham, Phillip R. Daves

Chapter8: Basic Stock Valuation

Section: Chapter Questions

Problem 2P

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