Question: Hello, Can you please tell me what I did wrong here. I can't tell if it's because of rounding or if I just got it

Hello, Can you please tell me what I did wrong here. I can't tell if it's because of rounding or if I just got it completely wrong-I used excel to get my answer, but the right answer my professor marked was 72.64 not 73.60 Hello, Can you please tell me what I did wrong here. I

Question 1 0 / 1 point At the end of the year 2020 Brown Bear Corporation paid dividends $4.09 per share. The company projects the following annual growth rates in dividends: Year Growth Rate 2021 15% 2022 15% 2023 15% 2024 11% 2025 8% 2026 6% From year 2027 onward growth in dividends is expected to remain constant at 2% per year. The required rate of return for this stock is 11.19%. Calculate the economic value of the stock now (end of the Year 2020). Answer: 73.60 X (72.64)

Step by Step Solution

There are 3 Steps involved in it

1 Expert Approved Answer
Step: 1 Unlock blur-text-image
Question Has Been Solved by an Expert!

Get step-by-step solutions from verified subject matter experts

Step: 2 Unlock
Step: 3 Unlock

Students Have Also Explored These Related Finance Questions!