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Canter is thinking about investing in either Scrolls R Us or Messy Ltd. Scrolls R Us is a fairly new business and Canter anticipates that
Canter is thinking about investing in either Scrolls R Us or Messy Ltd. Scrolls R Us is a fairly new business and Canter anticipates that their dividends will grow at a rate of 3% for the foreseeable future. The next dividend is expected to be $1.50. Messy Ltd on the other hand is a matured company so their dividend has not changed in years. Their last dividends paid was $2.00. If the rate of return for similar stock is 7%, which investment is the cheapest?
Breakdowns or explanations are greatly appreciated
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