Tresnan Brothers is expected to pay a $3.30 per share dividend at the end of the year (.e, D,- $3.30). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, r is 16%, 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 9P: Constant Growth Valuation Crisp Cookwares common stock is expected to pay a dividend of 3 a share at...
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1. Problem 9.02 (Constant Growth Valuation) Tresnan Brothers is expected to pay a \$3.30 per share dividend at the end of the year(1.e.D1​=53.20). The dividend is expected to grow at a constant rate of 94 a year. The required rate of tetura on the stock,fm​is16%. What is the stock's current value per share? Round vour answer to the nearest cent.
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1. Problem 9.02 (Constant Growth Valuation)
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Tresnan Brothers is expected to pay a $3.30 per share dividend at the end of the year (i.e., D₁ - $3.30). The dividend is expected to grow at a constant rate of 9% a
year. The required rate of return on the stock, r, is 16 %. What is the stock's current value per share? Round your answer to the nearest cent.
$
Transcribed Image Text:Attempts 0 Average 0/1 1. Problem 9.02 (Constant Growth Valuation) eBook Tresnan Brothers is expected to pay a $3.30 per share dividend at the end of the year (i.e., D₁ - $3.30). The dividend is expected to grow at a constant rate of 9% a year. The required rate of return on the stock, r, is 16 %. What is the stock's current value per share? Round your answer to the nearest cent. $
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