Problem:
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.50 a share. The company has promised to maintain a constant dividend.
Required:
How much are you willing to pay for one share of this stock if you want to earn a 11.80 percent return on your equity investments?
- $15.30
- $8.30
- $3.37
- $41.30
- $29.66
Note: Be sure to show how you arrived at your answer.