In 2021, the utility company DTE Energy (DTE) paid a $3.56 dividend. Using D 0 = $3.56,
Question:
In 2021, the utility company DTE Energy (DTE) paid a $3.56 dividend. Using D0 = $3.56, k = 5.35 percent, and an industry average growth rate of g = 3 percent, calculate a present value estimate for DTE. Compare this value with the early 2022 DTE stock price of $129.68.
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Plugging in the numbers we have This estimate is hi...View the full answer
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