Spacefood Products will pay a dividend of $2.40 per share this year. It is expected that this dividend will grow by 5% per year each year in the future. What will be the current value of a single share of Spacefood's stock if the firm's equity cost of capital is 12%?

Respuesta :

Answer:

​The value of a single share is $34.29  

Explanation:

P=   D 1/  r−g

P = $2.40/ 12%- 5% = $34.29