Question: Problem 7-12 Stock Valuation [LO 1 Wesen Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a
Problem 7-12 Stock Valuation [LO 1 Wesen Corp. will pay a dividend of $3.60 next year. The company has stated that it will maintain a constant growth rate of 5 percent a year forever if you want a return of 17 percent, how much will you pay for the stock? (Do not round Intermediate calculations and round your answer to 2 declmal places, e.g, 32.16) Current stock price $ If you want a return of 10 percent, how much will you pay for the stock? (Do not round intermediate calculations and round your answer to 2 decimal places, o.g, 32.16.)
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