Answer:
$24.53
Explanation:
Good food pays an annual dividend of $3.28 for one share
The organization plans to increase the future dividend by 3.2%
= 3.2/100
= 0.032
The rate of return is 17%
= 17/100
= 0.17
Therefore, the worth of one share of stock from the firm can be calculated as follows
Po = [3.28×(1+0.032)] / (0.17-0.032)
= (3.28×1.032)/(0.17-0.032)
= 3.3849/0.138
= $24.53
Hence one share of the stock is worth $24.53
