It is january 15 2010 max motors is expected to pay a, Ask an Expert

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It is January 15 2010, Max motors is expected to pay a dividend of $1.12 per share at the end of the year - December 31 2010. The dividend is expected to grow at a rate of 4% per year and forever after. Shareholders expect a return of 15%.

1. What is the market price per share today of the stock?

2. What will the price per share be at the beginning of the next year? (2011)

3. What rate of return will investors earn on the stock over the 2010 year?

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Financial Management, Finance

Category:- Financial Management
Reference No.:- M92421178

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