Question: Need an excel solution with explaination (urgent needed) Problem #2 A. A company has cost of equity of 12% and a dividend growth rate of
Need an excel solution with explaination (urgent needed)
| Problem #2 | |||||||||
| A. A company has cost of equity of 12% and a dividend growth rate of 3%. Its dividends for next year is $4.58 per share. What should the stock's price be? | |||||||||
| P | = | D1 | P = Price | ||||||
| (r-g) | D1 = Dividend 1 | ||||||||
| r = rate of inflation | |||||||||
| P | = | g=constant annual compound growth rate | |||||||
| - | |||||||||
| P | = | ||||||||
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