Michael's, Inc. has just paid $2.05 to its shareholders as an annual dividend. Simultaneously, the company announced that future dividends will increase by 4.50 percent. If you require a rate of return of 8.7 percent, how much are you willing to pay today to buy one share of Michael's stock?

Answer rating: 100% (QA)

To determine the value of one share of Michaels stock we can u... View the full answer