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Author Question: You are considering buying a zero growth stock. If the firm pays a $3.70 annual dividend, and your ... (Read 80 times)

Sadjam2

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Question 1

You are considering buying a zero growth stock. If the firm pays a $15 annual dividend, and your required rate of return is 7.5%, what is the maximum price you would pay for this stock?

$100


$150


$180


$200



Question 2

You are considering buying a zero growth stock. If the firm pays a $3.70 annual dividend, and your required rate of return is 16%, what is the maximum price you would pay for this stock?

$22.31


$22.50


$23.13


$24.03



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Marked as best answer by Sadjam2 on Aug 7, 2023

athenaheim

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Sadjam2

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Reply 2 on: Aug 7, 2023
Wow, this really help


dyrone

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Reply 3 on: Yesterday
YES! Correct, THANKS for helping me on my review

 

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