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1) Sleep More Corporation has pledged to pay a $10 per share dividend every year indefinitely If you require an 11% return on your investment,
1) Sleep More Corporation has pledged to pay a $10 per share dividend every year indefinitely If you require an 11% return on your investment, how much will you pay for the company's shares today? Price ot a share today (PO) 2) Refer to part(1). Suppose that Sleep More Corp. instead offered to pay a $3.00 per share dividend next year, and pledged to increase its dividend by 4.5% per year indefinitely. If you still require an 11% return on your investment, how much will you pay for the company's shares today! Price of a share today (PO) 3) Refer to part (2) What is the dividend yield? 4) Mattresses RUs shares currently sell for $64 per share. The market requires a 10% return on the company's shares. if the company maintains a constant 4.5% growth rate in dividends, what was the most recent dividend per share paid on the shares? Most recent dividend (DO) =
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