Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the...

 

Transcribed Image Text:

Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year (that is, D₁= $0.50). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, r, is 15%. What is the stock's current value per share? A) $7.02 B) $7.14 C) $7.30 D) $7.22 E) $7.34 Thomas Brothers is expected to pay a $0.50 per share dividend at the end of the year (that is, D₁= $0.50). The dividend is expected to grow at a constant rate of 8% a year. The required rate of return on the stock, r, is 15%. What is the stock's current value per share? A) $7.02 B) $7.14 C) $7.30 D) $7.22 E) $7.34

Answer rating: 100% (QA)

The detailed answer for the above question is provided bel... View the full answer