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...


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.)







Jun 07, 2022
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