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    Gee Gee's Avatar
    Gee Gee Posts: 1, Reputation: 1
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    #1

    Nov 15, 2008, 08:50 AM
    Constant Growth Rate Model formula?
    A company is paying a common stock dividend of $4 in the first year, $4.20 in the second year, $4.41 in the third year, and its most recent dividend was $4.63. The company wishes to continue this dividend indefinitely. What is the value of the company's stock if the required rate of return is 12 percent?
    Clough's Avatar
    Clough Posts: 26,677, Reputation: 1649
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    #2

    Nov 15, 2008, 06:32 PM

    Hi, Gee Gee!

    Greetings and WELCOME to the site! I just moved your question that you had posted in Introductions to this topic area so that it would get the most exposure to those who are best able to answer it. Introductions is for people to introduce themselves and we try to not ask questions there.

    It can be a little confusing when first learning how to use this site! Your question will get noticed much more in this topic area.

    We would appreciate it if you would return to Introductions sometime to tell us a little about yourself though, if you would be willing to do that.

    Thanks!

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