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Leprechaun's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $3.20 a share.
Leprechaun's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $3.20 a share. Secondly, the company announced that all future dividends will increase by 4% annually. What is the maximum amount you should pay to purchase a share of the company's stock if your goal is to earn a 8% rate of return? O A. $51.60 O B. $62.46 O C. $77.00 O D. $80.00 How much are you willing to pay for one share of stock if the company just paid an $.40 annual dividend, the dividends increase by 2% annually and you require an 6% rate of return? O A. $10.20 O B. $12.40 O C. $16.80 O D. $17.40 Lisa's Stores offers a common stock that pays an annual dividend of $3.00 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 8% return on your equity investments? O A. $21.00 O B. $23.33 O C. $26.68 O D. $37.50
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