Question
Michael's, Inc. just paid $2.30 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.00 percent.
Michael's, Inc. just paid $2.30 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.00 percent. If you require a rate of return of 9.2 percent, how much are you willing to pay today to purchase one share of Michael's stock?
what is the equation for this question/steps to solve it?
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
