Kenzie Cos. is expected to pay a dividend of $2.75 per year indefinitely. If the appropriate rate

Question:

Kenzie Cos. is expected to pay a dividend of $2.75 per year indefinitely. If the appropriate rate of return on this stock is 16 percent per year, and the stock consistently goes ex-dividend 40 days before dividend payment date, what will be the expected minimum and maximum prices in light of the dividend payment logistics?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...