Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.50 a...
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $3.50 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a return of 11.80 percent on your equity investments?
Multiple Choice
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$29.66
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$8.30
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$3.37
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$15.30
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$41.30
Homework Answers
Ans $ 29.66
Price of share =Dividend / Cost of Equity
= 3.50 / 11.80%
= $ 29.66
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