Bui Corp. pays a constant $14.50 dividend on its stock. The company will maintai
ID: 2717372 • Letter: B
Question
Bui Corp. pays a constant $14.50 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever.
If the required return on this stock is 10 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
Bui Corp. pays a constant $14.50 dividend on its stock. The company will maintain this dividend for the next eight years and will then cease paying dividends forever.
Explanation / Answer
current price =Dividend *PVAF@10%,8
= 14.50 * 5.33493
=$ 77.36 per share