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21 February, 10:23

GEO Inc. has paid annual dividends of $.41, $.47, and $.53 a share over the past three years, respectively. The company expects to now maintain a constant dividend. At a discount rate of 14.4 percent, what is the current value per share?

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  1. 21 February, 11:42
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    current price = 3.68

    Explanation:

    annual dividends of $.41, $.47, and $.53 over the past three years

    discount rate of 14.4%

    current value per share will be given by the formula

    current price = last dividend/discount rate

    in this case we have that

    current price = 0.53/0.144=3.68
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