The ZZ Corporation has just paid a dividend of $3.5M. The expected growth of the company is 7.3% per year. The interest rate used for this type of corporation is 10.4%. Assume that there are 800,000 shares outstanding. What is the value of a share of stock in the ZZ Corporation? (Keep your answer to 2 decimal places, e.g. xx.12.)

Answer:price = $151.43Step-by-step explanation:Given data: dividend = $3.5MGrowth percentage = 7.3% per yearNumber of share is 800,000Price for stock can be calculated as[tex]price  = \frac{dividend \times (1+g)}{Ke-g}[/tex]here, Ke = 10.4%g = 7.3%dividend per share  [tex]= \frac{3.5M}{800,000} [/tex]= $4.375 PER SHARESo we have[tex]price  = \frac{4.375\times (1+0.073)}{0.104 - 0.073}[/tex][tex]price = \frac{4.375\times 1.073}{0.031}[/tex]price = $151.43