GEO Inc. has paid annual dividends of $.41, $.47, and $.53 a share over the past three years, respectively. The company expects to now maintain a constant dividend. At a discount rate of 14.4 percent, what is the current value per share?

Respuesta :

Answer:

current price =3.68

Explanation:

annual dividends of $.41, $.47, and $.53 over the past three years

discount rate of 14.4%

current value per share will be given by the formula

current price = last dividend/discount rate

in this case we have that

current price = 0.53/0.144=3.68