The common stock of A.G. Tailor has a required return of 16 percent. The latest press release stated that last year's dividend was $0.90 per share and that future dividends will increase by 15 percent for the following 5 years. After that, the dividend growth rate will be 3 percent indefinitely. One share of this stock today is worth?

Answer rating: 100% (QA)

To calculate the value of one share of AG Tailors common stock today we can use the dividend discoun... View the full answer