How much are you willing to pay for one share of stock if the company just paid a $.80 annual dividend, the dividends increase by 4% annually and you require an 8% rate of return?
A) $19.23
B) $20.00
C) $20.40
D) $20.80
E) $21.63

Question

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The Answer of How much are you willing to pay for one share of stock if the company just paid a $.80 annual dividend, the dividends increase by 4% annually and you require an 8% rate of return?
A) $19.23
B) $20.00
C) $20.40
D) $20.80
E) $21.63

How Much Are You Willing to Pay for One Share