Still Growing Corp. is a mature firm, growing at a constant rate of 3% per year. Its net income last year was $10 million and it has 2.5 million shares outstanding. Still Growing Corp. has no debt and all income is paid out as dividends to its shareholders. Assuming a 15% cost of capital, what should be the current stock price.

Answer rating: 100% (QA)

To calculate the current stock price of Still Growing Corp we can use the dividend discoun... View the full answer