Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. FIN 419 Week 4 Stock Valuation Problem

FIN 419 Week 4 Stock Valuation Problem

Calculate the following stock valuation problems:

  • Company X is paying an annual dividend of $1.35 and has decided to pay the same amount forever. How much should you pay for the stock, if you want to earn an annual rate of return of 9.5% on this investment?
  • You want to purchase common stock of Company X and hold it for 7 years. The company just announced they will be paying an annual cash dividend of $6.00 per share for the next 9 years. How much should you pay for the stock, if you will be able to sell the stock for $28 at the end of seven years and you want to earn an annual rate of return of 11% on this investment?

Click here to Find all Assignments for FIN419 Course Didn’t find your answers? Don’t worry we are here to help you! Ask Questions

Course: FIN419 Finance For Decision Making
School: University of Phoenix

  • 29/08/2017
  • 9
Available CoursesAsk Questions & Chat Now
×
Welcome to GetMyAnswers.com!

Click on Peter below to initiate a chat with him on WhatsApp to receive help Anonymously.

× WhatsApp Us & Get Help...