A stock pays an annual dividend of $4 and has a required return of 9%. How...

Question

Question

Answer 1

Answer #1

Answer

$ 44.44 is required to pay today

.

Formula Used :

Price= Dividend/return

Explanation:

Price= 4/0.09 = $44.44

Therefore,

$ 44.44 is required to pay today to earned $ 4 dividend

Answer 2

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