Question

Stacker Weight Loss currently pays an annual year-end dividend of $1.60 per share. It plans to increase this dividend by 2.5% next year and maintain it at the new level for the foreseeable future. If the required return on this firm's stock is 12%, what is the value of Stacker's stock? The value of Stacker's stock is $ (Round to the nearest cent.) 

          Stacker Weight Loss currently pays an annual year-end dividend of $1.60 per share. It plans to increase this dividend by 2.5% next year and maintain it at the new level for the foreseeable future. If the required return on this firm's stock is 12%, what is the value of Stacker's stock?

The value of Stacker's stock is $ (Round to the nearest cent.)
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Stacker Weight Loss currently pays an annual year-end dividend of 1.60 per share. It plans to increase this dividend by 2.5% next year and maintain it at the new level for the foreseeable future. If the required return on this firm's stock is 12%, what is the value of Stacker's stock? The value of Stacker's stock is (Round to the nearest cent.)

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Horngren’s Cost Accounting
Horngren’s Cost Accounting
Srikant M. Datar, Madhav V. Rajan 16th Edition
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Text: eHantalar Yunaniytan-GSYiH Yunanistankono i on Bolounde financial Management1 CANBAYULKEN 23/04/23 7:57 PM ? HW2 Question 4, Warm-Up 7-5 similar to Points: 0 of 15 (0) Save Stacker Weight Loss currently pays an annual year-end dividend of $1.60 per share. It plans to increase this dividend by 2.5% next year and maintain it at the new level for the foreseeable future. The required return on this firm's stock is 12%. What is the value of Stacker's stock? The value of Stacker's stock is (Round to the nearest cent).
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Transcript

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00:01 In this question, we are required to calculate the value of stacker weight losses stock.
00:05 We can use the zero growth model as given here.
00:10 It assumes that there will be no growth in dividends, meaning that they will remain constant over time.
00:19 The zero growth model assumes that the dividend will remain constant forever.
00:24 So, in this case, the value of the stock is simply the present value of the next year's dividend.
00:30 The present value of a dividend is equal to the dividend divided by the required return...
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