The MacHardee Plumbing Company has common stock outstanding. The stock paid a dividend of $2.00 per share last year, but the company expects that earnings and dividends will grow by 25% for the next two years before dropping to a constant 9% growth rate afterward. The required rate of return on similar common stocks is 13%.

What is the per-share value of the company's common stock? 

Answer rating: 100% (QA)

To calculate the pershare value of the companys common stock we can use the Gordon Growth Model also ... View the full answer