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Constant Growth: Johnson Company Has Just Paid a Dividend of $4.45

question 83

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Constant growth: Johnson Company has just paid a dividend of $4.45. The company has forecasted a growth rate of 8 percent for the next several years. If the appropriate discount rate is 14 percent, what is the current price of this share? (Round to the nearest dollar.)

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Definitions:

Down's Syndrome

A genetic disorder caused by the presence of all or part of a third copy of chromosome 21, characterized by distinctive physical features and developmental delays.

Zygote

The initial cell formed when a sperm cell fertilizes an egg cell, representing the earliest stage of human development.

Prematurely

Occurring or developing earlier than expected or before the usual time.

Down Syndrome

A chromosomally transmitted form of intellectual disability, caused by the presence of an extra copy of chromosome 21.

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