Answered step by step
Verified Expert Solution
Question
1 Approved Answer
I want an answer. 24. Corporation XYZ pays the same dividend annually. XYZ Co. recently paid its dividend of $6.75 per share. If investors require
I want an answer.
24. Corporation XYZ pays the same dividend annually. XYZ Co. recently paid its dividend of $6.75 per share. If investors require a 9% (per year) on the stock of XYZ, then what would be the (intrinsic) value of the stock of XYZ? A) $67.5 B) $75 C) $135 D) $1,000 25. As of December 31, 2021, the shares of Company ABC are $200 per share. Investors require an annual return of 9% on stock ABC. On December 31,2021 , you bought one share of ABC after the 2021's dividend payment was completed. Suppose that you can receive a dividend of $3 on December 31, 2022, and then you are going to sell one share of ABC on the same day. What price must the stock ABC be sold to satisfy the required rate of return? A) $215 B) $206 C) $221 D) $218 Step by Step Solution
There are 3 Steps involved in it
Step: 1
Get Instant Access to Expert-Tailored Solutions
See step-by-step solutions with expert insights and AI powered tools for academic success
Step: 2
Step: 3
Ace Your Homework with AI
Get the answers you need in no time with our AI-driven, step-by-step assistance
Get Started