o Homework Ira Randall Google Chrome ecure httpswwwmathxlco

o Homework- Ira Randall - Google Chrome ecure https://www.mathxl.com/Student/PlayerHomework.aspx?homeworkld-4 BA 579 (Summer 2018) lomework: Chapter 10 omework Save : 0 of 2 pts 4 1 1 of 6 (o complete) HW Score: 0%, 0 .. core P10-3 (similar to) Question Help Related to Checkpoint 10.1) (Common stock valuation) Header Motor, Inc., paid a $3.98 dividend last year. At a constant growth rate of 7 percent, what is the value of the common stock if the investors require a 15 percent rate of return? The value of the common stock is S (Round to the nearest cent) rts

Solution

The value of the common stock = 3.98*1.07/(0.15 - 0.07

The value of the common stock = 53.23