Charlie Lee has invested in stock of Izepodd Enterprise, a company that\'s been in business for about three years but has such a strong product line they expect to continue to offer their products and services forever. Izepodd\'s current dividend is $ per share. The company expects to grow this dividend at the constant rate of per year forever. What interest rate also known as the discount rate is consistent with a stock price for Izepodd of $ per share as given by the present value of a constant growth perpetuity?

Answer rating: 100% (QA)

To find the interest rate consistent with a stock price for Izepodd we can use the Gordon Grow... View the full answer