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PLEASE SHOW FORMULA AND SOLUTION 16. East Bay Diner pays an annual dividend of $3.25 per share to its shareholders. The economy is tough due
PLEASE SHOW FORMULA AND SOLUTION
16. East Bay Diner pays an annual dividend of $3.25 per share to its shareholders. The economy is tough due to COVID, but East Bay promises to somehow continue maintaining this level of dividend for the time being. How much are you willing to pay for one share of East Bay stock if you need to earn an 18% annual return? 17. Errico Enterprises just paid a $8 per share annual dividend with the stated intention of increasing its dividends by 4% annually. You would like to purchase stock this company but realize that you will not have the funds to do so for another 4 years. If you require a 16% annual rate of return, how much will you be willing to pay per share for the stock when you can afford to make this investmentStep by Step Solution
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