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Dietterich Electronics wants its shareholders to earn a return of 15% on their investment in the company. At what price would

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Answer #1

Value of stock=Annual dividend/required rate

1.Value of stock=0.2/0.15=1.33(Approx).

2.Value of stock=1.2/0.15=8

3.Value of stock=1.7/0.15=11.33(Approx).

4.Value of stock=3.4/0.15=22.67(Approx).

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