Baby’s Care Corporation has an infinite horizon with a constant dividend of $25. Your uncle Sam and his wife are willing
Posted: Sun May 29, 2022 5:05 pm
Baby’s Care Corporation has an infinite horizon with a constant
dividend of $25. Your uncle Sam and his wife are willing to invest
their money in purchasing the shares of this corporation. While
your uncle wants an annual return of 10% on his investment, his
wife is expecting an annual return of 8% on her money. Which one of
them will be eager to pay a higher price for this company’s
share?
dividend of $25. Your uncle Sam and his wife are willing to invest
their money in purchasing the shares of this corporation. While
your uncle wants an annual return of 10% on his investment, his
wife is expecting an annual return of 8% on her money. Which one of
them will be eager to pay a higher price for this company’s
share?