The appropriate rate for pharasalus'' stock

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Reference no: EM131030229

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?

Reference no: EM131030229

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