5.4b
You own a security that provides an annual dividend of $145 forever. The security’s annual return is 9%. What is the present value of this security? Round your answer to the nearest cent.
Current value=Annual dividend/annual return
=145/0.09
which is equal to
=$1611.11(Approx).
5.4b You own a security that provides an annual dividend of $145 forever. The security’s annual...
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