Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 4%. Last year's dividend, Divo, was $6 per share. The company will be in business for 70 years with no liquidating dividend. What is the price of this stock if a. an investor wants a return of 9%? b. an investor wants a return of 11%? c. an investor wants a return of 12%? d. an investor wants a return of 14%? e. an investor wants a return of 17%? a. What is the price of this stock if an investor wants a return of 9%? (Round to the nearest cent.)
Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 4%. Last year's dividend, Divo, was $6 per share. The company will be in business for 70 years with no liquidating dividend. What is the price of this stock if a. an investor wants a return of 9%? b. an investor wants a return of 11%? c. an investor wants a return of 12%? d. an investor wants a return of 14%? e. an investor wants a return of 17%? a. What is the price of this stock if an investor wants a return of 9%? (Round to the nearest cent.)
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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Transcribed Image Text:Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 4%. Last year's
dividend, Divo, was $6 per share. The company will be in business for 70 years with no liquidating dividend. What is
the price of this stock if
a. an investor wants a return of 9%?
b. an investor wants a return of 11%?
c. an investor wants a return of 12%?
d. an investor wants a return of 14%?
e. an investor wants a return of 17%?
a. What is the price of this stock if an investor wants a return of 9%?
(Round to the nearest cent.)
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