What is one share of this stock worth to you if you require an 11% rate return?

Mathematics
Tutor: None Selected Time limit: 1 Day

Bug Buster just paid its annual dividend of $1.25 a share. The firm recently announced that all future dividends will be increased by 3% annually. What is one share of this stock worth to you if you require an 11% rate return?


Nov 18th, 2015

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

Price per share = 1.25*1.03/(11%-3%)= $16.09


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Nov 18th, 2015

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