Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year

Question:

Tresnan Brothers is expected to pay a $1.80 per share dividend at the end of the year (i.e., D₁ = $1 80). The dividend is expected to grow at a constant rate of 4% a year. The required rate of return on the stock, r_s, is 10%. What is the stock’s current value per share?

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...