Assume Microsoft just paid a dividend of $1.56 per share. Your required rate of return is 10%, and the analysis you’ve done tells you that Microsoft should be able to grow its dividend by a rate of 7% per year.
Assume Microsoft just paid a dividend of $1.56 per share. Your required
rate of return is 10%, and the analysis you’ve done tells you that Microsoft should be able to grow its dividend by a rate of 7% per year. What is the most you should be willing to pay for this stock? Now let’s say you go on a two year trip around the world and come back to find that your analysis of Microsoft has not changed. What is the most you should be willing to pay per share of Microsoft stock after your two year vacation?
Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code “Newclient”
The post Assume Microsoft just paid a dividend of $1.56 per share. Your required rate of return is 10%, and the analysis you’ve done tells you that Microsoft should be able to grow its dividend by a rate of 7% per year. appeared first on Superb Professors.
For any questions, feedback, or comments, we have an ethical customer support team that is always waiting on the line for your inquiries.