Tough times have hit the retail store chain of Brador, Inc. Analysts expect its dividend of $1.00

Question:

Tough times have hit the retail store chain of Brador, Inc. Analysts expect its of $1.00 a share to fall by 50 percent next year and another 50 percent the following year before it returns to its normal growth pattern of 3 percent a year. If investors expect a return of 18 percent on their investments in Brador stock, what should its current stock price be?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...