Rosita's, Inc next annual dividend to its common stockholders will be paid in approximately on year and you expect the dividend to be $1.65 per share After that, you expect future dividends to grow by by 2.5 percent annually. What is the maximum amount you should pay to purchase a share of this stock if your required return on this stock is 12 percent?

Answer rating: 100% (QA)

To solve this problem you can use the Gordon Growth Model formula whic... View the full answer