1 how much would you pay for a share of stock paying a, Ask an Expert

Economics

1. How much would you pay for a share of stock paying a dividend ?(cash payout ?C) of ?$4 to be paid in one? year, a known selling price in one year ?(?P) of ?$50?, and expected return ?(R) of similar assets of 2?%?

2. Compute the price of a share of stock that pays a ?$1.50 per year dividend and that you expect to be able to sell in one year for ?$20, assuming you require a 10?% return.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91722150

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