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Lucas Inc. just paid an annual dividend of $3.00 last week and is currently selling for $25 per share. Its dividends are expected to increase
Lucas Inc. just paid an annual dividend of $3.00 last week and is currently selling for $25 per share. Its dividends are expected to increase by 5% annually. Based on the riskiness of Lucas Inc's stock, your required rate of return is 16%. What should be your trading strategy on this stock? O a. Nothing, the stock is fairly priced. b. Buy, the stock is worth $28.64 per share. C. Sell, the stock is worth $26.50 per share. d. Sell, the stock is worth $21.20 per share. e. Buy, the stock is worth $26.50 per share
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