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Question $21$

$5$ pts

A firm.pays a constant annual dividend of $$\mathrm{.}89$ per share. The stock is priced at $$7\mathrm{.}61$ per share. If your required rate of return is $11$ percent per year, should you buy the stock? Why or why not?

$q,$

Noc, The stock has a present value of $$8\mathrm{.}09$ per share.

Yes; The stock has a present value of $$8\mathrm{.}09$ per share.

Noc: The stock has a present value of $$0\mathrm{.}99$ per share.

Yes: The stock has a present vatue of $$8\mathrm{.}98$ per share.

Noc; The stock has a present value of $$8\mathrm{.}98$ per share.