12) The automobile manufacturer Teslexus shall pay quarterly dividends of £2, per share, by the end of each of the following 8 quarters. Afterwards, the dividend will grow at a quarterly rate of 1%, forever. As an alternative, an investor could deposit the money in a bank account at 8%, compounded quarterly. The price of each share is closest to: A – £200.00 B – £187.06 C – £185.35 D – £172.41
12) The automobile manufacturer Teslexus shall pay quarterly dividends of £2, per share, by the end of each of the following 8 quarters. Afterwards, the dividend will grow at a quarterly rate of 1%, forever. As an alternative, an investor could deposit the money in a bank account at 8%, compounded quarterly. The price of each share is closest to: A – £200.00 B – £187.06 C – £185.35 D – £172.41
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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12) The automobile manufacturer Teslexus shall pay quarterly dividends of £2, per share, by the end of each of the
following 8 quarters. Afterwards, the dividend will grow at a quarterly rate of 1%, forever. As an alternative, an
investor could deposit the money in a bank account at 8%, compounded quarterly. The price of each share is closest
to:
A – £200.00
B – £187.06
C – £185.35
D – £172.41
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