Stocks price today according to the dividend growth model

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Reference no: EM13812377

The company is expected to pay its dividend today of $1.26. One year ago they paid a dividend of $1.20. You expect dividends to continue to grow constantly at the same rate as the past year. You discount this stock at a rate of 11%. What is your assessment of the stock’s price today according to the dividend growth model?

a. $22.05

b. $32.17

c. $24.86

d. $26.15

e. $20.84

Reference no: EM13812377

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