Question

coronav corp. just paid $3 dividends last year, it was $2.15 four years ago. the dividends should continue to grow at the same rate to infinity. how much is the stock price for coronav given that investors require 15% returns? (note: keep 4 decimals for your step answers)

Answer 1

The dividend discount model can only be used if you can figure out the dividend growth rate.A type of security-pricing model is the dividend discount model.

Which dividend formula is it?

In math, the following is the dividend's formula: Dividend is the sum of the divided by the quotient and the remaining amount. When we divide one number by another, we typically get an answer like this x is the dividend, y is the divisor, and z is the quotient in this equation.

What is the rate of dividend growth?

The annualized percentage rate of growth that a particular stock's dividend experiences over time is known as the dividend growth rate. Regular dividend increases are a common goal for many established businesses. The dividend growth rate is an essential input for dividend discount models, which are stock valuation models.

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