Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividen
ID: 2760660 • Letter: P
Question
Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividend is expected to grow at a rate of 2.9 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.9 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).Question 7 optio Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividend is expected to grow at a rate of 2.9 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.9 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).
Question 7 optio Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividend is expected to grow at a rate of 2.9 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.9 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).
Pharsalus Inc. just paid a dividend (i.e., D0) of $ 1.57 per share. This dividend is expected to grow at a rate of 2.9 percent per year forever. The appropriate discount rate for Pharsalus's stock is 13.9 percent. What is the price of the stock? (Round your answer to 2 decimal places and record your answer without dollar sign or commas).
Explanation / Answer
The price of the stock = D1 / K - g = 1.57 ( 1+ 0.029) / (0.139 - 0.029) = $ 14.69
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