Von Bora Corporation (VBC) pays a dividend of 2,000 share after one year. It is being expected that the dividends will be paid every year In perpetuity and that the amount grows with 5% per ann s'! The equity cost of capital is 13% per annum. What is the price of one share of VBC stock?

Answer rating: 100% (QA)

We can use the Gordon Growth Model to determine the price ... View the full answer