A company will pay a dividend of 3 per share in one years, Ask an Expert

Economics

A company will pay a dividend of $3 per share in one year's time. An investor projects that the dividend will increase at an annual rate of 5% and that he will be able to sell the stock for $50 in five years time. What maximum price should he pay for the stock today if he wants a return on investment of 15%? [$35.82 per share]

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M91694742

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