Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter15: Dividend Policy
Section: Chapter Questions
Problem 11P
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Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to
change the dividend. The firm's investors require a 15% return on the investment. What is the
expected market price on the stock?
Please select one of the best answers from below:
A). $53.36
B). $53.33
C). $53.31
D). $53.54
Transcribed Image Text:Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54
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