A share of stock in Enbridge Inc. pays an annual dividend of ​$3.34, and the dividend is expected to grow at 2%, on average, in the foreseeable future. The current market price is ​$44.58/share.   Below are the three individuals based on risk perception by each individual (from low to high). Identify who will likely be a buyer or a seller of this stock. ​(Each individual currently owns 100​ shares.)   Individual X has a discount rate of 5%   Individual Y has a discount rate of 8%   Individual Z has a discount rate of 11%

ENGR.ECONOMIC ANALYSIS
14th Edition
ISBN:9780190931919
Author:NEWNAN
Publisher:NEWNAN
Chapter1: Making Economics Decisions
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A share of stock in Enbridge Inc. pays an annual dividend of ​$3.34, and the dividend is expected to grow at 2%, on average, in the foreseeable future. The current market price is ​$44.58/share.

 

Below are the three individuals based on risk perception by each individual (from low to high). Identify who will likely be a buyer or a seller of this stock. ​(Each individual currently owns 100​ shares.)

 

Individual X has a discount rate of 5%

 

Individual Y has a discount rate of 8%

 

Individual Z has a discount rate of 11% 

 

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