Question
Last year, Harrison Delivery paid an annual dividend of $3.20 per share. The company has been reducing the dividends by 10% annually. How much are
Last year, Harrison Delivery paid an annual dividend of $3.20 per share. The company has been reducing the dividends by 10% annually. How much are you willing to pay to purchase stock in this company if your required rate of return is 11.5%?
| a. | $13.40 | |
| b. | $1.92 | |
| c. | $21.16 | |
| d. | $24.08 | |
| e. | $7.87 |
Shylo, Inc. preferred stock pays a $7.50 annual dividend. What is the maximum price you are willing to pay for one share of this stock today if your required return is 9.75%?
| a. | $32.26 | |
| b. | $79.81 | |
| c. | $76.92 | |
| d. | $35.48 | |
| e. | $72.68 |
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Handbook Of Income Distribution Volume 2A
Authors: Anthony B. Atkinson, Francois Bourguignon
1st Edition
0444594280, 978-0444594280
