Assume Coleco pays an annual dividend of 1.53 and has a share price of 37.79. It announces that its annual dividend will increase to 1.75. If its dividend yield stays the same, what should be its new share price?

FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
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Assume Coleco pays an annual dividend of 1.53 and has a
share price of 37.79. It announces that its annual dividend
will increase to 1.75. If its dividend yield stays the same, what
should be its new share price?
Transcribed Image Text:Assume Coleco pays an annual dividend of 1.53 and has a share price of 37.79. It announces that its annual dividend will increase to 1.75. If its dividend yield stays the same, what should be its new share price?
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