What is value per share-using the gordon growth model

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Reference no: EM131583285

MacroSoft paid dividends per share of $ 3.56 in the most recent year, and dividends are expected to grow 2.0% a year forever. The stock has a beta of 1.21, the expected return on the stock market is 8.00% and the risk-free rate is 2.50%.

A. What is the value per share, using the Gordon Growth Model?

B. The stock is trading for exist45.00 per share. What is the growth rate implied by this price?

Reference no: EM131583285

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