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What is the value per share of hupta

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Reference no: EM131798045

Question - Use the following information to solve the problem below:

Hupta Corporation --2002---

Net income: $ 6,000

Dividends: $ 2,000

Total assets-12/31/02: $ 50,000

Total liabilities-12/31/02: $ 20,000

Number of shares outstanding: 1,000

Cost of equity: 10%

Using the dividend discount model, assuming dividends grow at 10% in 2003 and at 5% thereafter, what is the value per share of Hupta at 12/31/02?

A) $48.20

B) $44.00

C) $40.18

D) $40.00

Reference no: EM131798045

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