D Question 10 5 pts Netwerk One is expected to pay a divide

D | Question 10 5 pts Netwerk One is expected to pay a dividend of S3.50 at the end of the year ifthe company has a required rate of return of 11%, and constant growth rate of 4%, what is the current stock price Your answer should be between 16.80 and 67.50, rounded to 2 decimal places, with no special characters

Solution

Stock price = Expected dividend / (Return - growth rate) = 3.5/ (11% - 4%) = $50