Maxwell Communications paid a dividend of $1.20 last year. Over the next 12 months, the dividend is expected to grow at 13 percent, which is the constant growth rate for the firm (g). The new dividend after 12 months will represent D1. The required rate of return (Ke) is 17 percent. Compute the price of the stock (P0). (Do not round intermediate calculations. Round your answer to 2 decimal places.)

The  price of the stock is

Step-by-step explanation:

From the question we are told that

     The dividend is  

     The expected growth rate is  

      The required rate of return is  

The new dividend after 12 months is mathematically represented as

substituting values

The  price of the stock the price of stock is mathematically represented as

substituting values

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europa2433

step-by-step explanation:

x-3y=4

step-by-step e