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Leslie's Clothing Stores offers a common stock that pays an annual dividend of $2.70 a share. The company has promised to maintain a constant dividend.

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Leslie's Clothing Stores offers a common stock that pays an annual dividend of $2.70 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 12.70 percent return on your equity investments? 1. The Play House pays a constant annual dividend of $5.00 per share. How much are you willing to pay for one share if you require a 10 percent rate of return? 2

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