Waiting for answer This question has not been answered yet. You can hire a professional tutor to get the answer.

QUESTION

You are deciding whether to add Bard Publishing to your portfolio, but you are concerned about your projection for their growth rate.

You are deciding whether to add Bard Publishing to your portfolio, but you are concerned about your projection for their growth rate. Bard's cost of equity capital (the discount rate for equity) is known to be 9% and they just paid a dividend of $4.75 per share. When calculating the value of the stock today, you cannot decide if the constant growth rate will be 4.5% or 5.5%. By how much does this seemingly small difference impact your valuation, i.e., the price per share? (Enter just the number in dollars without the $ sign or a comma and round off decimals to the closest integer, i.e., rounding $30.49 down to $30 and rounding $30.50 up to $31.)

Show more
LEARN MORE EFFECTIVELY AND GET BETTER GRADES!
Ask a Question