Problemstaal corporation will pay a 340 per share dividend, Ask an Expert

Accounting

Problem:

Staal Corporation will pay a $3.40 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely.

Required:

Question: If you require a return of 11 percent on your investment, how much will you pay for the company's stock today?

Note: Please show how to work it out.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91166531

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