Homework Answers
Value of stock=Annual dividend/required return
1.Value of stock=0.4/0.11=$3.64(Approx).
2.Value of stock=1.2/0.11=$10.91(Approx).
3.Value of stock=1.7/0.11=$15.45(Approx).
4.Value of stock=3.1/0.11=$28.18(Approx).
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