The appropriate rate of return on this stock is 14 percent


Kenzie Cos. is expected to pay a dividend of $2.05 per year indefinitely. The appropriate rate of return on this stock is 14 percent per year, and the stock consistently goes ex-dividend 35 days before dividend payment date.

What will be the expected minimum price in light of the dividend payment logistics?

Minimum stock price$  

What will be the expected maximum price in light of the dividend payment logistics?

Maximum stock price$

Solution Preview :

Prepared by a verified Expert
Business Economics: The appropriate rate of return on this stock is 14 percent
Reference No:- TGS02889443

Now Priced at $10 (50% Discount)

Recommended (91%)

Rated (4.3/5)