Question
Please take a look at this and solve, I am having trouble with it: Problem #1 Company X is paying an annual dividend of $1.35
Please take a look at this and solve, I am having trouble with it:
Problem #1
Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?
Dividend $1.35
Rate of Return 0.095
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Fundamentals of Corporate Finance
Authors: Jonathan Berk, Peter DeMarzo, Jarrad Harford, David A. Stangeland, Andras Marosi
1st canadian edition
978-0133400694
