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
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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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