Question: Question 4 ( 2 0 pts ) . Simon, Co . just paid a $ 0 . 8 5 annual dividend. The company has a

Question 4(20 pts). Simon, Co. just paid a $0.85 annual dividend. The company
has a policy whereby the dividend increases by 2% annually. You would like to
purchase 500 shares of stock in this firm but realize that you will not have the
funds to do so for another two years. If you desire a 12.50% rate of return, how
much should you expect to pay for 500 shares when you can afford to buy this
stock?
Question 4(20 pts). Simon, Co. just paid a $0.85 annual dividend.

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