Question: ~If you require a 1 5 % return to compensate you for the risk of owning stock, you expect company XYZ to pay $ .

~If you require a

15 %

return to compensate you for the risk of owning stock, you expect company XYZ to pay $

. 15

in dividends this year, and expect the company to sell for $

30

at the end of the year, how much would you be willing to pay for the company today??v Suppose you decide the stock is more risky than you originally thought. HoW does this affect the price you are willing to

-

pay?

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