ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If...
ARTIC Mining Ltd.'s stock is expected to pay an annual dividend of $0.80 per share indefinitely. If the stock is currently trading at a price of $18.90 per share, and the firm's equity cost of capital is 6.4%, what is the price per share that investors should be expected to pay in 5 years (into the future)?
Homework Answers
rate positively ..
| Price after 5 year = 6th year dividend/required rate of return | ||
| Price = | 0.8/6.4% | |
| Price = | 12.5 | |
| ans = | $ 12.50 |
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ARTIC Mining Ltd.'s stock is expected to pay an
annual dividend of $0.80 per share indefinitely. If...
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A stock is expected to pay $0.80 per share every year indefinitely. If the current price of the stock is $18.90, and the equity cost of capital for the company that released the shares is 6.4%, what price would an investor be expected to pay per share five years into the future? A. $12.50 OB. $22.90 C.$21.23 O D. $20.43 O E. $22.65
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