Compute how much will you pay for the stock

Reference no: EM131932945

Question: Alexander Corp. will pay a dividend of $4.10 next year. The company has stated that it will maintain a constant growth rate of 5.25 percent a year forever. If you want a 18 percent rate of return haw much will you pay for the stock? If you want a 10 percent rate of return, how much will you pay for the stock?

Reference no: EM131932945

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Compute how much will you pay for the stock : Alexander Corp. will pay a dividend of $4.10 next year. The company has stated that it will maintain a constant growth rate of 5.25 percent a year forever.

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