Final answer:
The current value per share is calculated using the Gordon Growth Model, and given the values D1 of $3.9, growth rate (g) of 6%, and required rate of return (rs) of 19%, the current value per share is approximately $30.
Step-by-step explanation:
The student's question pertains to calculating the current value per share of stock given a dividend (D1), growth rate (g), and required rate of return (rs). To calculate the current value per share, we can use the Gordon Growth Model, which is given by the formula:
P = D1 / (rs - g)
Where P is the current stock price, D1 is the expected dividend in the next period, rs is the required rate of return, and g is the growth rate of dividends. Plugging in the values:
P = $3.9 / (0.19 - 0.06) = $3.9 / 0.13 = $30
Thus, the current value per share should be about $30 per share using this model.