Question

if you require a return of 11 percent on your investkments, how much will you pay for the company's stock today

Answer 1

the stock price is $49.10

Step-by-step explanation:

The computation of the stock price that have to pay is shown below:

= Dividend ÷ (Required rate of return - growth rate)

= $3.56 ÷ (11% - 3.75%)

= $3.56 ÷ 7.25%

= $49.10

Hence, the stock price is $49.10

We simply applied the above formula so that the correct value could come

And, the same is to be considered