If each of two stocks are currently paying an annual dividend of $1 per share (i.e., their last dividend was $1), but th
Posted: Sun May 29, 2022 6:40 pm
If each of two stocks are currently paying an annual dividend of
$1 per share (i.e., their last dividend was $1), but the dividends
of Stock B are expected to grow at twice the 4% p.a. rate
anticipated for Stock A, Investors require a return of 10% p.a. on
both A and B. What is the price of Stocks A and B? a. $17.33 and
$54 b. $17.33 and $56 c. $18.99 and $54 d. $20.67 and $89
show logic
$1 per share (i.e., their last dividend was $1), but the dividends
of Stock B are expected to grow at twice the 4% p.a. rate
anticipated for Stock A, Investors require a return of 10% p.a. on
both A and B. What is the price of Stocks A and B? a. $17.33 and
$54 b. $17.33 and $56 c. $18.99 and $54 d. $20.67 and $89
show logic