IBM ended trading on 7/21/2015 with a stock price of $163.07, and it’s most r

Business & Finance
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 IBM ended trading on 7/21/2015 with a stock price of $163.07, and it’s most recent year of dividend payments was $5.20 per share.  If dividend payments are expected to grow at a constant annual rate of 8% following last year’s dividend of $5.20, what is the expected annual return of an investment in this stock at today’s price?

Jul 23rd, 2015

Thank you for the opportunity to help you with your question!

stock price =163.07 , div dents for today=5.20

growth of dividends expected=8%

5.20*108/100=5.616

the investments are today=stock price + dividents=5.616+163.07

answer=$168.686

Please let me know if you need any clarification. I'm always happy to answer your questions.
Jul 23rd, 2015

Thank you for your help! Can you tell me what the formulas are that you used to get these? 

Jul 23rd, 2015

its just using your brains it has no fomular please folow it keenly and you will understand


Jul 23rd, 2015

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