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Toys4U, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2.25 percent annually.
Toys4U, Inc. will pay an annual dividend of $1.85 next year. The company just announced that future dividends will be increasing by 2.25 percent annually. i. How much are you willing to pay for one share of this stock if you require a 16 percent return? ii. If the share would be trading at $12, would you buy the share? Please state clearly the reasons for your choice. iii. What will be the price of this share after 4 years?
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