Question: V = ? 1. Peter Brothers Inc. is expected to pay a $0.50 per share dividend at the end of the year. The dividend

V = ? 1. Peter Brothers Inc. is expected to pay a

V = ? 1. Peter Brothers Inc. is expected to pay a $0.50 per share dividend at the end of the year. The dividend is expected to grow at a constant rate of 7% a year. The required rate of return on the stock is 15%. What is the value per share of the company's stock? Also estimate the dividend yield and the capital gains yield over the first year.

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