If a stock's dividend is expected to grow at a constant rate of eight percent in the future

and it has just paid a dividend of $1.25 a share, and you have an alternative investment of equal risk that will earn a 12 percent rate of return, what would you be willing to pay per share for this stock?
A) $31.25 B) $1.40 C) $1.25 D) $1.12


A

Economics

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The figure above illustrates the U.S. foreign exchange market. Illustrate how the exchange rate changes if the expected future exchange rate falls. Does the dollar appreciate or depreciate?

What will be an ideal response?

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Foreign ownership of debt has decreased the burden of the debt on future generations of Americans absolutely and relatively

Indicate whether the statement is true or false

Economics

Duane owns his own real estate company. The Bureau of Labor Statistics counts Duane as

a. unemployed and in the labor force. b. unemployed and not in the labor force. c. employed and in the labor force. d. employed and not in the labor force.

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An economist who favored expanded government would recommend:

A. tax cuts during recession and reductions in government spending during inflation. B. tax increases during recession and tax cuts during inflation. C. tax cuts during recession and tax increases during inflation. D. increases in government spending during recession and tax increases during inflation.

Economics