How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends increase by 3 percent annually, and you require a rate of return of 15 percent?

$9.49

$6.87

$8.84

$10.40

$8.58

Question

How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends increase by 3 percent annually, and you require a rate of return of 15 percent?

$9.49

$6.87

$8.84

$10.40

$8.58

Accepted Answer

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Question

How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends increase

How much are you willing to pay for one share of stock if the company just paid an annual dividend of $1.03, the dividends increase by 3 percent annually, and you require a rate of return of 15 percent?

$9.49

$6.87

$8.84

$10.40

$8.58

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