Massy Ltd on the other hand is a matured company so their dividend has not changed in years. Their last dividends paid was $2.00. Massy Ltd. stock is currently being sold at $30. Calculate the value of the securities, recommend to Rose Gardens if the investment will make the sense if they have $50,000 to invest and the expected rate of return for all securities mentioned above is 7%

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter2: The Domestic And International Financial Marketplace
Section: Chapter Questions
Problem 9P
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Massy Ltd on the other hand is a matured company so their dividend has not changed in years. Their last dividends paid was $2.00. Massy Ltd. stock is currently being sold at $30.

Calculate the value of the securities, recommend to Rose Gardens if the investment will make the sense if they have $50,000 to invest and the expected rate of return for all securities mentioned above is 7%

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