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7-8 Dietterich Electronics wants its shareholders to earn a return of 7% on their investment in the company. At what price would the stock need
7-8
Dietterich Electronics wants its shareholders to earn a return of 7% on their investment in the company. At what price would the stock need to be priced today if Dietterich Electronics had a a. $0,40 constant annual dividend forever? b. $0.80 constant annual dividend forever? c. $1.90 constant annual dividend forever? d. $3.00 constant annual dividend forever? a. The value of the stock for an investor who wants a return of 7% with a constant annual dividend of $0.40 forever is! $ (Round to the nearest cent) b. The value of the stock for an investor who wants a l'eturn of 7% with a constant annual dividend of 50 80 forever is $(Round to the nearest cent) c. The value of the stock for an investor who wants a return of 7% with a constant annual dividend of 51.90 forever is $(Round to the nearest cent.) d. The value of the stock for an investor who wants a return of 7% with a constant annual dividend of $3.00 forever is $ (Round to the nearest cent) Step by Step Solution
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