MGS 4000 – Pharsalus inc. just paid a dividend of 2.14 per share.
January 7th, 2018
Pharsalus inc. just paid a dividend of 2.14 per share. This dividend is expected to grow at a rate of 3.4% per year forever. The appropriate rate for Pharasalus’ stock is 10.3%. What is the price of the stock? I have the answer but am confused as to how it was found, the formula used is D0* 1+g/ks-g, the correct answer is $33.47 but I come up with $32.07, what am I doing wrong?