Blart Corp. recently paid a dividend of $5.00 per share. Analysts forecast future dividends will increase by 2% forever. The required rate of return that investors demand to hold Blart Corp.'s stock is 8% What is its estimated price per share today

$85.0

Explanation:

The formula to calculate the estimated price per share today will be:

Po = Do (1 + g) / (r - g)

Where,

Po = Current price

Do = Current dividend = 5.00

g = Dividend growth = 2% = 0.02

r = Required rate of return = 8% = 0.08

Therefore, the estimated price per share today will be:

= 5.00(1 + 0.02) / (0.08 - 0.02)

= 5.00(1.02) / 0.06

= 5.10 / 0.06

= 85.00

Therefore, the answer is $85

answer; i believe its (d) intrinsic;

u = 30

continuing your method

= +

subtract from both sides

= - thus

= -

= ⇒ u = 30