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Good Evening! Can you explain how to solve for this question? HP, Inc. (HPQ) just paid an annual dividend of $2.50 a share and is
Good Evening!
Can you explain how to solve for this question?
HP, Inc. (HPQ) just paid an annual dividend of $2.50 a share and is expected to increase that amount by 4.5% per year. If you are planning to buy shares of this stock at the end of next year, how much should you expect to pay per share if the market rate of return for this type of security is 16% at the time of your purchase?
1) 24.81
2) 36.30
3) 21.74
4) 23.74
Thank you!
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