Homework Question Help

Business & Finance
Tutor: None Selected Time limit: 1 Day

Royal Bank common shares pay dividends annually. They just paid a $1.50 dividend. Stock holders require a return of 12%. Royal is expected to continue paying dividends that will grow at 3.5% per annum in perpetuity. What is the fair price of a share of Royal Bank stock?

Jul 15th, 2015

Thank you for the opportunity to help you with your question!

   

the  correct answer  when woeked upon is 18.26
Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 15th, 2015

Studypool's Notebank makes it easy to buy and sell old notes, study guides, reviews, etc.
Click to visit
The Notebank
...
Jul 15th, 2015
...
Jul 15th, 2015
Dec 6th, 2016
check_circle
Mark as Final Answer
check_circle
Unmark as Final Answer
check_circle
Final Answer

Secure Information

Content will be erased after question is completed.

check_circle
Final Answer