What should an investor pay for a common stock of PNB Corp. which has no growth...
What should an investor pay for a common stock of PNB Corp. which has no growth opportunities but pays annual dividends of $1.35 per share, while the required rate of return is 12.5%.
Homework Answers
current price=annual dividend/required rate of return
=(1.35/0.125)
which is equal to
=$10.8
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What should an investor pay for a common stock of PNB Corp.
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