The Stopperside Wardrobe Co. just paid a dividend of $1.69 per share on its stock. The...

 

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The Stopperside Wardrobe Co. just paid a dividend of $1.69 per share on its stock. The dividends are expected to grow at a constant rate of 7.2% per year indefinitely. If investors require an 12.2% return on The Stopperside Wardrobe Co. stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) What is the current price? Current price $ The Stopperside Wardrobe Co. just paid a dividend of $1.69 per share on its stock. The dividends are expected to grow at a constant rate of 7.2% per year indefinitely. If investors require an 12.2% return on The Stopperside Wardrobe Co. stock, answer the following: (Do not round intermediate calculations. Round the final answers to 2 decimal places. Omit $ sign in your response.) What is the current price? Current price $

Answer rating: 100% (QA)

To calculate the current price of the stock we can use the Gordon Growth Model also known as ... View the full answer