HQZ Inc., has just paid a dividend of $3.79 per share and has announced that it will increase the dividend by $2.64 per share for each of the next four years, and then never pay another dividend. If you require a return of 8.73 percent on the company's stock, how much will you pay for a share today? Answer to two decimals.
HQZ Inc., has just paid a dividend of $3.79 per share and has announced that it will increase the dividend by $2.64 per share for each of the next four years, and then never pay another dividend. If you require a return of 8.73 percent on the company's stock, how much will you pay for a share today? Answer to two decimals.
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
Problem 1PS
Related questions
Question
![HQZ Inc., has just paid a dividend of $3.79 per share and has announced that it will increase the dividend by $2.64 per
share for each of the next four years, and then never pay another dividend. If you require a return of 8.73 percent on the
company's stock, how much will you pay for a share today? Answer to two decimals.](/v2/_next/image?url=https%3A%2F%2Fcontent.bartleby.com%2Fqna-images%2Fquestion%2F01aeb521-8a84-46bb-a08f-39608d4fe878%2F1451d18c-50f4-4708-a3dc-e0da1e1bba01%2Fjbcmcts_processed.jpeg&w=3840&q=75)
Transcribed Image Text:HQZ Inc., has just paid a dividend of $3.79 per share and has announced that it will increase the dividend by $2.64 per
share for each of the next four years, and then never pay another dividend. If you require a return of 8.73 percent on the
company's stock, how much will you pay for a share today? Answer to two decimals.
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