Problemkenzie cos is expected to pay a dividend of 215 per, Ask an Expert

Accounting

Problem:

Kenzie Cos. is expected to pay a dividend of $2.15 per year indefinitely. The appropriate rate of return on this stock is 15 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date.

Required:

Question 1: What will be the expected minimum price in light of the dividend payment logistics?

Question 2: What will be the expected maximum price in light of the dividend payment logistics?

Note:Provide specific examples to support your answers.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91167830

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