Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Dietterich Electronics wants its shareholders to earn a return of 14% on their investment in the company. At what price would the stock need to be priced today if Dietterich Electronics had a
a. $0.20 constant annual dividend forever?
b. $1.10 constant annual dividend forever?
c. $2.00 constant annual dividend forever?
d. $2.70 constant annual dividend forever?
a. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $0.20 forever is:
(Round to the nearest cent.)
b. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $1.10 forever is:
(Round to the nearest cent.)
c. The value of the stock for an investor who wants a return of 14% with
constant annual dividend of $2.00 forever is:
(Round to the nearest cent.)
d. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $2.70 forever is:
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Transcribed Image Text:Dietterich Electronics wants its shareholders to earn a return of 14% on their investment in the company. At what price would the stock need to be priced today if Dietterich Electronics had a a. $0.20 constant annual dividend forever? b. $1.10 constant annual dividend forever? c. $2.00 constant annual dividend forever? d. $2.70 constant annual dividend forever? a. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $0.20 forever is: (Round to the nearest cent.) b. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $1.10 forever is: (Round to the nearest cent.) c. The value of the stock for an investor who wants a return of 14% with constant annual dividend of $2.00 forever is: (Round to the nearest cent.) d. The value of the stock for an investor who wants a return of 14% with a constant annual dividend of $2.70 forever is:
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