Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $9 per share and has announced that it will increase the dividend by $4 per share for each of the next five years and then never pay another dividend. If you require a return of 10 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
Premier, Incorporated, has an odd dividend policy. The company has just paid a dividend of $9 per share and has announced that it will increase the dividend by $4 per share for each of the next five years and then never pay another dividend. If you require a return of 10 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Current share price
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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Transcribed Image Text:Premier, Incorporated, has an odd dividend policy. The company has
just paid a dividend of $9 per share and has announced that it will
increase the dividend by $4 per share for each of the next five
years and then never pay another dividend. If you require a return of
10 percent on the company's stock, how much will you pay for a share
today? (Do not round intermediate calculations and round your
answer to 2 decimal places, e.g., 32.16.)
Current share price
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