Answer:
the price of the stock today is $46
Explanation:
The computation of the price of the stock today is shown below;
= Expected dividend ÷ (required rate of return - growth rate)
= $2.3 ÷ (10.6% - 5.6%)
= $2.3 ÷ 0.05
= $46
hence, the price of the stock today is $46
We simply applied the above formula so that the correct value could come
And, the same is to be considered
