Must Vote, Inc., has been in the business for quite some time. Its net income last year was $1.3 million, and it has 500,000 shares outstanding. It is estimated that Must Vote, Inc. is a mature firm and is growing at a constant rate of 3.0%. It has no debt and all income is paid out as dividends to its shareholders. Assuming a 13% cost of capital,  what should the current stock price of Must Vote, Inc. be?

Answer rating: 100% (QA)

To calculate the current stock price of Must Vote Inc we can use the Gordon Growth Model also k... View the full answer