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Value of Stock - Scribd

The document provides a formula to calculate the value of a stock given certain financial metrics. It states that if the current dividend is $1, the growth rate is 4%, and required return is 10%, then the value of the stock can be calculated as the current dividend divided by the required return minus the growth rate, which equals $17.33.

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lorrynorry
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40 views1 page

Value of Stock - Scribd

The document provides a formula to calculate the value of a stock given certain financial metrics. It states that if the current dividend is $1, the growth rate is 4%, and required return is 10%, then the value of the stock can be calculated as the current dividend divided by the required return minus the growth rate, which equals $17.33.

Uploaded by

lorrynorry
Copyright
© Attribution Non-Commercial (BY-NC)
We take content rights seriously. If you suspect this is your content, claim it here.
Available Formats
Download as DOC, PDF, TXT or read online on Scribd
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What is the Value of stock if the current dividend is $1.00, growth rate is 4% and required return is 10%?

Value of Stock = D1/(r-g) = (1*1.04)/(.10-.04) = $17.33

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