Pharmecology just paid an annual dividend of $2.15 per share. It's a mature company, but future EPS and dividends are expected togrow with inflation, which is forecasted at 4.25% per year. The nominal cost of capital is 11.00%.a. What is Pharmecology's current stock price? (Do not round intermediate calculations. Round your answer to 2 decimal places.)Current stock priceb. What would be Pharmecology's current stock price using forecasted real dividends and a real discount rate? (Do not roundintermediate calculations. Round your answer to 2 decimal places.)Current stock price

The price at which the stock is traded in the market is referred to as the current stock price. it…

Answered: Pharmecology just paid an annual…

Managerial Accounting

15th Edition

ISBN:9781337912020

Author:Carl Warren, Ph.d. Cma William B. Tayler

Publisher:Carl Warren, Ph.d. Cma William B. Tayler

Chapter16: Financial Statement Analysis

Section: Chapter Questions

Problem 2MAD

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