What is the most you would pay for the stock described


What is the most you would pay for a stock that just paid a $1.50 dividend that is expected to grow annually at 4% if you want a 10% return?

P=D/r-g

P= 1.50(1.04)/.10-.04

P=1.56/.06 = 26

What is the most you would pay for the stock described above if the dividends were constant and your holding period were 35 years?

PLEASE SHOW ALL WORK

Request for Solution File

Ask an Expert for Answer!!
Financial Management: What is the most you would pay for the stock described
Reference No:- TGS02844419

Expected delivery within 24 Hours