1) If you own 10,000 shares of stock of VZ and it pays a dividend of $0.38 per share, then what is the total dividend you will receive?

2) Assume Verizon (VZ), has a current stock price of $57 and will pay a $2.45 dividend in one year; its equity cost of capital is 13%. What price must you expect VZ stock to sell for immediately after the firm pays the dividend in one year to justify its current price?

Answer rating: 100% (QA)

1 To calculate the total dividend you will receive you can multiply the dividend per share by the ... View the full answer