Question
Gehle Corporation pays a constant annual dividend of $.63 per share. The stock is priced at $5.38 per share. If your required rate of return
Gehle Corporation pays a constant annual dividend of $.63 per share. The stock is priced at $5.38 per share. If your required rate of return is 11 percent per year, should you buy the stock? Why or why not?
Multiple Choice
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No; The stock has a present value of $5.73 per share.
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Yes; The stock has a present value of $5.73 per share.
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No; The stock has a present value of $0.70 per share.
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Yes; The stock has a present value of $6.36 per share.
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No; The stock has a present value of $6.36 per share.
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The Sterling Bonds And Fixed Income Handbook
Authors: Mark Glowrey
1st Edition
0857190423, 978-0857190420
