Solution-How much will you pay for the company stock today

How much will you pay for the company stock today

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Reference no: EM13508733

1). Stock values: Warren Corporation will pay a $3.60 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a 13 percent return on your investment, how much will you pay for the company's stock today?

2). Stock Valuation: suppose you that a company's stock currently sells for $70 per share and the required return on the stock is 12 percent. You also know that the total return on the stock is evenly divided between a capital gains yield and a dividend yield. If it's the company's policy to always maintain a constant growth rate in its dividends, what is the current dividend per share.

Reference no: EM13508733

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How much will you pay for the company stock today : Stock values: Warren Corporation will pay a $3.60 per share dividend next year. The company pledges to increase its dividend by 4.5 percent per year indefinitely. If you require a 13 percent return on your investment, how much will you pay for the..

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How much will you pay for the company stock today

Reference no: EM13508733

Reference no: EM13508733

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