1 answer

Symon's Suppers Co. has announced that it will pay a dividend of $4.21 per share one...

Question:

Symons Suppers Co. has announced that it will pay a dividend of $4.21 per share one year from today. Additionally, the compa

Symon's Suppers Co. has announced that it will pay a dividend of $4.21 per share one year from today. Additionally, the company expects to increase its dividend by 4.3 percent annually. The required return on the company's stock is 10.5 percent. What is the current share price? $64.51 $63.74 $67.90 $70.82 O $40.10

Answers

value = dividend next year/(Required return - growth rate)

current share price

= 4.21/(0.105-0.043)

= 67.90

.

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