Mercier corporations stock is selling for 95 it has just, Ask an Expert

Economics

Mercier Corporation's stock is selling for $95. It has just paid a dividend of $5 s share. The expected growth rate in dividends is 8 percent.

a. What is the needed rate of return on this stock?

b. Using your answer to (a), assume Mercier announces developments that should lead to dividend enhenaces of 10 percent annually. What will be the new value of Mercier's stock.

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Business Economics, Economics

Category:- Business Economics
Reference No.:- M9532739

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