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The next dividend (Div1) is $1.80, the growth rate (g) is 6%, and the required rate of return (r) is 12%. What is the stock price, according to the constant growth dividend model

Respuesta :

The stock price is $30.

What is the stock price?

The constant growth dividend model postulates that the price of a stock is a function of the next year's dividend, rate of return and growth rate.

The constant growth dividend model = dividend next year / (required return - growth rate)

$1.80 / (12% - 6%)

$1.80 / 6% = $30

To learn more about the constant growth dividend model, please check: https://brainly.com/question/15567560

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