Question
Suppose you are thinking of purchasing the stock of XYZ Electronics, Inc. In addition to the dividend and price from year one you expect it
- Suppose you are thinking of purchasing the stock of XYZ Electronics, Inc. In addition to the dividend and price from year one you expect it to pay a $4.60 dividend in two years. You believe you can sell the stock for $28.75 at that time. You require a return of 9% on investments of this risk. What is the maximum you would be willing to pay?
2. Suppose you are thinking of purchasing the stock of XYZ Electronics, Inc. In addition to the dividend and price from year one and two you expect it to pay a $5.29 dividend in three years. You believe you can sell the stock for $33.06 at that time. You require a return of 9% on investments of this risk. What is the maximum you would be willing to pay?
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Healthcare Finance An Introduction To Accounting And Financial Management
Authors: Louis C. Gapenski
5th Edition
1567934250, 978-1567934250
