Suppose you are thinking of purchasing the stock of WHATUPDAWG, Inc.In addition to the dividend and price
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- Suppose you are thinking of purchasing the stock of WHATUPDAWG, Inc. In addition to the dividend and price from year one you expect it to pay a $4.60 dividend in two years. You believe you can sell the stock for $28.75 at that time. You require a return of 10% on investments of this risk. What is the maximum you would be willing to pay?
- Suppose you are thinking of purchasing the stock of Super Dawgs, Inc. In addition to the dividend and price from year one and two you expect it to pay a $5.29 dividend in three years. You believe you can sell the stock for $33.06 at that time. You require a return of 10% on investments of this risk. What is the maximum you would be willing to pay?
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