Question
1) If you own 10,000 shares of stock of VZ and it pays a dividend of $0.38 per share, then what is the total dividend
1) If you own 10,000 shares of stock of VZ and it pays a dividend of $0.38 per share, then what is the total dividend you will receive?
2) Assume Verizon (VZ), has a current stock price of $57 and will pay a $2.45 dividend in one year; its equity cost of capital is 13%. What price must you expect VZ stock to sell for immediately after the firm pays the dividend in one year to justify its current price?
Step by Step Solution
There are 3 Steps involved in it
Step: 1
1 To calculate the total dividend you will receive you can multiply the dividend per share by the ...
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Step: 2
Step: 3
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Fundamentals Of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford
5th Edition
0135811600, 978-0135811603
