An oil drilling company's resources are being depleted and known reserves are becoming scarcer. As a result, the company's earnings are declining at a rate of 8% each year. If the current earnings are $10 per share, the dividends payout ratio is 40%, and the required return on equity is 15% p.a., what is the price per share of the company's common stock?

Answer rating: 100% (QA)

To calculate the price per share of the companys common stock we can use the dividend discount model ... View the full answer