Question
Please give me correct answers I will ratte you the highest
Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 5%. Last year's dividend, Div0, was $5 per share. T company will be in business for 50 years with no liquidating dividend. What is the price of this stock if an investor wants a return of 9%? an investor wants a return of 11%? an investor wants a return of 13%? an investor wants a return of 15%? an investor wants a return of 17%? What is the price of this stock if an investor wants a return of 9%? $ (Round the nearest cent.) What is the price of this stock if an investor wants a return of 11%? $ (Round the nearest cent.) What is the price of this stock if an investor wants a return of 13%? $ (Round the nearest cent.) What is the price of this stock if an investor wants a return of 15%? $ (Round the nearest cent.) What is the price of this stock if an investor wants a return of 17%? $ (Round the nearest cent.)
Explanation / Answer
return is 9% . let x be the cost of stock
return is the divident on each share
hence 0.09 x =5
value of stock x =55.56 $
.....
similarly
for dividend at 11%
value of stock =45.45$
...
or dividend at 13%
value of stock =38.46
...
or dividend at 15%
value of stock =33.33
...
or dividend at 17%
value of stock =29.41