FINANCE 3101 – Thomas Brothers is expected to pay a $3.8 per share
June 7th, 2024
Thomas Brothers is expected to pay a $3.8 per share dividend at the end of the year (that is, D1 = $3.8). The dividend is expected to grow at a constant rate of 6% a year. The required rate of return on the stock, rs, is 13%. What is the stock’s current value per share? Round your answer to two decimal places.