FinanceIsFun just paid a dividend of $1.55 on each share of its stock. The company expects that the dividends will increase at a constant rate of 6 percent per year in perpetuity. Investors require a 14 percent return on this company's stock. Calculate the current stock price.

$21

Explanation:

The computation of the current stock price is shown below:

Current stock price = (Next year dividend) ÷ (Required rate of return - growth rate)

where,

Next year dividend is

= $1.55 + $1.55 × 0.06

= $1.55 + $0.093

= $1.643

Now placing these values, so the current stock price is

= ($1.643) ÷ (14% - 6%)

= ($1.643) ÷ (8%)

= $21

answer; /// that is so (false);

if you use only 25 for your entertainment and only 200 for the groceries that you really need and take out the 50 per month for the computer then that should be enough