Question
H&H company made an announcement that it will start paying annual dividends, with the first dividend being $0.50. The following 2 years dividends will be
H&H company made an announcement that it will start paying annual dividends, with the first dividend being $0.50. The following 2 years dividends will be $0.75 and $1.00. After that, the dividend will be increased by 2.5% per year. How much are you willing to pay for a stock of H&H today if you expect 8% market return?
How much are you willing to pay for a stock that would pay $2 per share in the next yearly dividend with expected market return of 12%, and the stock is expected to be worth $102 one year from now?
Shares of J&J common stocks are currently selling at $30. At what rate the dividend are growing if the market return is at 10% and the last dividend paid was $1.60.
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