Use the? constant-growth model

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Reference no: EM131302081

Use the? constant-growth model? (Gordon model) to find the value of the firm shown in the following? table

Dividend expected next year                                  Dividend growth rate                              Required Return

                $1.33                                                                      6.9%                                                   13.2%

The value of the? firm's stock is ? Round to nearest cent

Kelsey? Drums, Inc., is a? well-established supplier of fine percussion instruments to orchestras all over the United States. The? company's class A common stock has paid a dividend of $9 per share per year for the last 20 years. Management expects to continue to pay at that amount for the foreseeable future. Sally Talbot purchased 300 shares of Kelsey class A common 5  years ago at a time when the required rate of return for the stock was 13%. She wants to sell her shares today. The current required rate of return for the stock is 9%

The value of the stock when Sally purchased it was _____ per share. Round to nearest cent.

Reference no: EM131302081

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