An issue of common stock is expected to pay a dividend of $4.80 at the end of

Question:

An issue of is expected to pay a of $4.80 at the end of the year. Its growth rate is equal to 9%. If the required rate of return is 13%, what is its current price?

Common Stock
Common stock is an equity component that represents the worth of stock owned by the shareholders of the company. The common stock represents the par value of the shares outstanding at a balance sheet date. Public companies can trade their stocks on... Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...