What is the price of the common stock

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Stagnant Iron and Steel currently pays a $9.20 annual cash dividend (D0). They plan to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the required rate of return by common stockholders (Ke) is 19 percent, what is the price of the common stock? (Do not round intermediate calculations. Round your answer to 2 decimal places)

price

Maxwell Communications paid a dividend of $2.15 last year. Over the next 12 months, the dividend is expected to grow at 12 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required rate of return (Ke) is 22 percent. Compute the price of the stock (P0). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

stock price

Reference no: EM131992668

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