James Smith is interested in buying the stock of First National Bank. While the bank’s management expects no growth in the near future, James is attracted by the dividend income. Last year the bank paid a dividend of $5.50. If James requires a return of 10.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank’s stock? (Round answer to 2 decimal places, e.g. 15.25.)

James Smith is interested in buying the stock of First National Bank. While the bank’s management expects no growth in the near future, James is attracted by the dividend income. Last year the bank paid a dividend of $5.50. If James requires a return of 10.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank’s stock? (Round answer to 2 decimal places, e.g. 15.25.)

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The post James Smith is interested in buying the stock of First National Bank. While the bank’s management expects no growth in the near future, James is attracted by the dividend income. Last year the bank paid a dividend of $5.50. If James requires a return of 10.0 percent on such stocks, what is the maximum price he should be willing to pay for a share of the bank’s stock? (Round answer to 2 decimal places, e.g. 15.25.) appeared first on Superb Professors.