Ascendas REIT Ltd just paid an annual dividend of $1.35 a share. In a recent announcement, due to good occupancy rate of their properties, Ascendas will commence increasing its dividends by 2.5 percent each year. The stock traditionally yields a return of 12.2 percent. For this stock to return its traditional rate, what should the market price of Ascendas REIT Ltd stock be? a. $12.03 b. $14.27 c. $15.96 d. $16.98

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
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Ascendas REIT Ltd just paid an annual
dividend of $1.35 a share. In a recent
announcement, due to good occupancy
rate of their properties, Ascendas will
commence increasing its dividends by 2.5
percent each year. The stock traditionally
yields a return of 12.2 percent. For this stock
to return its traditional rate, what should
the market price of Ascendas REIT Ltd stock
be?
a. $12.03
b. $14.27
c. $15.96
d. $16.98
Transcribed Image Text:Ascendas REIT Ltd just paid an annual dividend of $1.35 a share. In a recent announcement, due to good occupancy rate of their properties, Ascendas will commence increasing its dividends by 2.5 percent each year. The stock traditionally yields a return of 12.2 percent. For this stock to return its traditional rate, what should the market price of Ascendas REIT Ltd stock be? a. $12.03 b. $14.27 c. $15.96 d. $16.98
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