Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $25.00, $15.00, $6.60 and $3.10. Afterwards, the company pledges to maintain a constant 6 percent growth...


34) What am I doing wrong? The correct answer is 75.75 but I am not getting the right answer


Leisure Lodge Corporation is expected to pay the following dividends<br>over the next four years: $25.00, $15.00, $6.60 and $3.10. Afterwards,<br>the company pledges to maintain a constant 6 percent growth rate in<br>dividends forever. If the required return on the stock is 12 percent, what<br>is the current share price? (Do not round intermediate calculations.<br>Round your answer to 2 decimal places.)<br>Share price<br>D1<br>$25 GROWTH<br>0.06<br>D2<br>$15 Required return<br>0.12<br>D3<br>$6.60<br>D4<br>$3.10<br>Share price<br>$42.71<br>

Extracted text: Leisure Lodge Corporation is expected to pay the following dividends over the next four years: $25.00, $15.00, $6.60 and $3.10. Afterwards, the company pledges to maintain a constant 6 percent growth rate in dividends forever. If the required return on the stock is 12 percent, what is the current share price? (Do not round intermediate calculations. Round your answer to 2 decimal places.) Share price D1 $25 GROWTH 0.06 D2 $15 Required return 0.12 D3 $6.60 D4 $3.10 Share price $42.71

Jun 02, 2022
SOLUTION.PDF

Get Answer To This Question

Related Questions & Answers

More Questions »

Submit New Assignment

Copy and Paste Your Assignment Here