Breakfast Hut pays a constant annual dividend of $2 per share. How much are you willing to pay for one share if you require a 10 percent rate of return?
value = dividend next year/(Required return - growth rate)
= 2/10%
= 2/0.1
= 20
hence the answer is $20
Breakfast Hut pays a constant annual dividend of $2 per share. How much are you willing...
Breakfast Hut pays a constant annual dividend of $5 per share. How much are you willing to pay for one share if you require a 11 percent rate of return?
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ised Rapse QUESTION 12 The Pancake House pays a constant anual dividend of $1.45 per share. How much are you willing to pay for one share if you require a 17 percent rate of return? A S8.53 $1087 S11.04 DS8.33 t$11.38 QUESTION
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