Author Question: You are considering buying a zero growth stock. If the firm pays a $3.70 annual dividend, and your ... (Read 72 times)

Sadjam2 · **on:** Aug 7, 2023

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?

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$100

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$150

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$180

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$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?

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$22.31

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$22.50

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$23.13

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$24.03

athenaheim · **Reply #1 on:** Aug 7, 2023

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