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You have a chance to buy some common stock of Company X which has realized an annual dividend of $6.00; BUT, 18 years ago the
You have a chance to buy some common stock of Company X which has realized an annual dividend of $6.00; BUT, 18 years ago the dividend was $1.50 and increased constantly over those 18 years to arrive at the last but most recent paid dividend of $6.00. Your required rate of return to entice you towards moving your money into investments is 11%. For what price would you be willing to pay for this common stock? $59.00 $223.79 $206.90 0 46.49
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