(Answered) Question - ofdc ltd offered 225 per share dividend this

Accounting

Question - OFDC Ltd offered 2.25 per share dividend this year and suppose this payment remained constant forever.

a) Calculate the present price that you would like to pay for an OFDC's share if the discount rate is 8%?

Mark Adam bought 450 shares of GDFC Ltd shares for $27. A year later dividend retained 1.25/share and he decided to shell the same shares for $31 each.

b) What is the dollar returns?

c) What is the percentage returns?

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