4. Stock Valuation Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020: 2011 $0.07 2012 $0.08 2013 $0.93 2014 2015 2016 $1.10 $1.28 $1.46 2017 $1.59 2018 $1.80 $1.93 2019 2020 $2.11 If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern forever, and you want to earn 17% on your investment, what would you be willing to pay per share of Phased Solutions stock as of January 1, 2021?
4. Stock Valuation Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020: 2011 $0.07 2012 $0.08 2013 $0.93 2014 2015 2016 $1.10 $1.28 $1.46 2017 $1.59 2018 $1.80 $1.93 2019 2020 $2.11 If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern forever, and you want to earn 17% on your investment, what would you be willing to pay per share of Phased Solutions stock as of January 1, 2021?
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 8P
Question
![4. Stock Valuation
Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020:
2011
$0.07
2012
$0.08
2013
$0.93
2014
2015
2016
$1.10
$1.28
$1.46
2017
$1.59
2018
$1.80 $1.93
2019
2020
$2.11
If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern
forever, and you want to earn 17% on your investment, what would you be willing to pay per share of
Phased Solutions stock as of January 1, 2021?](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F04e71c85-31fc-4f3c-b260-9c13f1df04a5%2F6f8abe1e-be92-474f-a0fd-6f72a567bdd2%2Fa2eywqc_processed.jpeg&w=3840&q=75)
Transcribed Image Text:4. Stock Valuation
Phased Solutions Inc. has paid the following dividends per share from 2011 to 2020:
2011
$0.07
2012
$0.08
2013
$0.93
2014
2015
2016
$1.10
$1.28
$1.46
2017
$1.59
2018
$1.80 $1.93
2019
2020
$2.11
If you plan to hold this stock for 10 years, believe Phased Solutions will continue this dividend pattern
forever, and you want to earn 17% on your investment, what would you be willing to pay per share of
Phased Solutions stock as of January 1, 2021?
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