You are considering the purchase of Davis stock at a market price of $ 36 72 per share Assume the stock pays an annual dividend of $ 2 33 What would be your expected return Should you purchase the stock if your required return is 8 percent ...

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You are considering the purchase of Davis stock at a market price of $ 36.72 per share.

Question:

You are considering the purchase of Davis stock at a market price of $ 36.72 per share. Assume the stock pays an annual of $ 2.33. What would be your expected return? Should you purchase the stock if your required return is 8 percent?
Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...