Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 2%.

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Sia Dance Studios has an annual cash dividend policy that raises the dividend each year by 2%. Last year’s dividend was $3.00 per share. The company will be in business for forty years with no liquidating dividend. What is the price of this stock if
a. An investor wants a 9% return?
b. An investor wants an 11% return?
c. An investor wants a 13% return?
d. An investor wants a 15% return?
e. An investor wants a 17% return?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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