A for profit nursing home chain has paid a $4 per share dividend for many years

Question

A for profit nursing home chain has paid a $4 per share dividend for many years and expectations are the dividends will continue at that level for years to come. If investors require a 12 percent rate of return on investments with similar risk, what is the value of the company's stock? A for profit nursing home chain has paid a $4 per share dividend for many years and expectations are the dividends will continue at that level for years to come. If investors require a 12 percent rate of return on investments with similar risk, what is the value of the company's stock?

Explanation / Answer

Stock price:

= Dividend per annum/Required rate

= $4/12%

= $33.33

Related Questions

Navigate

• Browse (All)
• Browse A
• Subjects

---

---

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