Stellar Company is one of the renowned companies of the
Stellar Company is one of the renowned companies of the town, which deals in leather items. The product line of the company ranges from a leather keychain to leather jackets. The company currently pays a dividend of Rs 21.00 per share on its common stock and it expects to increase the dividend at constant growth of 7% forever. The company has set this growth by keeping the expected life earnings into consideration.
Required:
What value should you place on a share of this stock if you’re require rate return for this company share is 14%?
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