# Thread: [HELP!] Finding stock price per share (Po)?

1. ## [HELP!] Finding stock price per share (Po)?

Hi guys i'm new here.
I need help from the experts here to solve this problem:

A Stock has paid dividend for $6/share and expecting to grow 15% per year for the next 20 years, and then it will be constant forever. Using rate of return 11% please calculate: a) Stock price per share today (Po) b) if the stock price were$90/share, how much dividend per share would be offered to the investors today?

2. Originally Posted by Stratos
A Stock has paid dividend for $6/share and expecting to grow 15% per year for the next 20 years Can you calculate what$6 at 15% annually will
accumulate to over 15 years?

3. Originally Posted by Denis
Can you calculate what $6 at 15% annually will accumulate to over 15 years? using constant growth? Dt = D0 x (1+g)t =$6 x (1+0.15)15 = $7.50 4. Originally Posted by Denis Can you calculate what$6 at 15% annually will
accumulate to over 15 years?
constant growth?

$6 x (1.15)15$48.82

5. Correct! So you understand these.

do your calculation again, using n=20:
that'll give ~98.20
then "present value" above using 11%.

seems like you would assume 90
was result (instead of 98.20) and
do calculations over again...