Question 4 Please Answer A-E.

Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by

2%.

Last year's dividend,

Div0,

was

$6

per share. The company will be in business for

80

years with no liquidating dividend. What is the price of this stock ifa.an investor wants a return of

8%?

b.an investor wants a return of

11%?

c.an investor wants a return of

12%?

d.an investor wants a return of

15%?

e.an investor wants a return of

17%?

Question content area bottom

Part 1

a.What is the price of this stock if an investor wants a return of

8%?