Pharmecology just paid an annual dividend of $1.50 per share. It’s a mature company, but future EPS and dividends are expected to grow with inflation, which is forecasted at 3.50% per year. The nominal cost of capital is 10.25%.a.What is Pharmecology’s current stock price?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
b.What would be Pharmecology’s current stock price using forecasted real dividends and a real discount rate?(Do not round intermediate calculations. Round your answer to 2 decimal places.)
Already registered? Login
Not Account? Sign up
Enter your email address to reset your password
Back to Login? Click here