Michael\'s, Inc. just paid $2.35 to its shareholders as the annual dividend. Sim
ID: 2632133 • Letter: M
Question
Michael's, Inc. just paid $2.35 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.10 percent. If you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of Michael's stock?
Michael's, Inc. just paid $2.35 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.10 percent. If you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of Michael's stock?
Explanation / Answer
$58.81