Essentials Of Investments
11th Edition
ISBN: 9781260013924
Author: Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher: Mcgraw-hill Education,
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Jeyna is considering buying a stock. The company paid $10 in dividends in the last 12 months, with a stated intention to grow the dividends by 5.6% each year. What is a fair price for them to pay for this stock if they require a 15.7%
Question 25 options:
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$99.01 |
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$98.50 |
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$102.64 |
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$98.73 |
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- Suppose you purchased a stock a year ago. Today, you receive a dividend of $12 and you sell the stock for $127. If your return was 10%, at what price did you buy the stock? $________.arrow_forwardYou plan to pay $80 for a share of preferred stock that pays a $2.80 dividend per year forever. What annual rate of return will you realize? Group of answer choices 18.66 % 1.73 % 6.0 % 5.0 % 3.50%arrow_forwardValuing a share of a stock (P) that pays a constant dividend forever: Assume you expect the dividend to be $1.50 in one year (not right away, but wait one year out. Required rate of return is 5%. What is the Price of a share of this stock? $42 ○ $1500 $30 None of the above 易arrow_forward
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