What is the price if the per-share dividend will grow

Reference no: EM131923272

Question: Stock pricing with constant dividend or dividend with constant growth rate. What is the current per-share value of JRM Corporation to an investor who require a 16% rate of return?

a) JRM' current per-share dividend is $2 and is expected to remain at 2 for the foreseeable future? D0 = ??; r = ??; Price = ??

b) What is the price if the per-share dividend will grow at 2%? D0 = ??; g = ??; r = ??; Price = ??

Reference no: EM131923272

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