Dividends and earnings to grow at constant rate

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Reference no: EM132018141

The Let'sThinkBig Company expects their dividends and earnings to grow at a constant rate of 5% a year into the foreseeable future. Currently the market is requiring a 11% rate of return on their stock. The most recent dividend paid was $1.50/share. SHOW ALL WORK FOR FULL CREDIT. What is the current price of the stock?

Reference no: EM132018141

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Dividends and earnings to grow at constant rate : The Let'sThinkBig Company expects their dividends and earnings to grow at a constant rate of 5% a year into the foreseeable future.

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