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Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54

Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54

Essentials Of Investments
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
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Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54
Transcribed Image Text:Delray Corporation pays an $8 dividend per year, and the board of directors has no plans to change the dividend. The firm's investors require a 15% return on the investment. What is the expected market price on the stock? Please select one of the best answers from below: A). $53.36 B). $53.33 C). $53.31 D). $53.54
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