Estes Park Corp. pays a constant $7.80 dividend on its stock. The company will maintain this...

 

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Estes Park Corp. pays a constant $7.80 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 11.2 percent, what is the current share price? Current dividend Years until dividend ceases Required return 7.80 Share price 13 11.2% Complete the following analysis. Do not hard code values in your calculations. Estes Park Corp. pays a constant $7.80 dividend on its stock. The company will maintain this dividend for the next 13 years and will then cease paying dividends forever. If the required return on this stock is 11.2 percent, what is the current share price? Current dividend Years until dividend ceases Required return 7.80 Share price 13 11.2% Complete the following analysis. Do not hard code values in your calculations.

Answer rating: 100% (QA)

The current share price can be determined using the following approach which combines the ... View the full answer