Question
Nofal Corporation will pay a $4.55 per share dividend next year. The company pledges to increase its dividend by 6.5 percent per year, indefinitely. Required:
Nofal Corporation will pay a $4.55 per share dividend next year. The company pledges to increase its dividend by 6.5 percent per year, indefinitely.
| Required: |
| If you require a return of 9 percent on your investment, how much will you pay for the companys stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).) |
| Current stock price | $ |
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Economics For Financial Markets
Authors: Brian Kettell
1st Edition
0750653841, 978-0750653848
