A stock is expected to pay a dividend of Php0.75 at the end of the year. The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%. What is the stock's current price? Group of answer choices Php18.29 Php19.22 Php17.39 Php17.84 Php18.75

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
Problem 8P: A stock is trading at $80 per share. The stock is expected to have a yearend dividend of $4 per...
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A stock is expected to pay a dividend of Php0.75 at the end of the year.  The required rate of return is rs = 10.5%, and the expected constant growth rate is g = 6.4%.  What is the stock's current price?

Group of answer choices
Php18.29
Php19.22
Php17.39
Php17.84
Php18.75
 
 
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