ooo Verizon LTE 9:37 PM ezto.mheducation.com C Hot Wings, Inc., has an odd divid

Question

ooo Verizon LTE 9:37 PM ezto.mheducation.com C Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.10 per share and has announced that it will increase the dividend by $6.10 per share for each of the next four years, and then never pay another dividend. Required: If you require a 13.50 percent return on the company's stock how much will you pay for a share today? (Select rounded answers as directed, but do not use the rounded numbers in intermediate calculations.) 5e3 00 O$83.40 $47 95 Learning Objective: 07-01 Assess how stock prices depend on future dividends and dividend growth Previous atempt

Explanation / Answer

P0 = $14.20 / 1.135 + $20.30 / 1.1352 + $26.40 / 1.1353 + $32.50 / 1.1354

P0 = $12.51 + $15.75 + $18.05 + $19.58

P0 = $65.89

Related Questions

Navigate

• Browse (All)
• Browse O
• Subjects

---

---

Integrity-first tutoring: explanations and feedback only — we do not complete graded work. Learn more.