Michelak's Maritime Industries has relatively stable earnings and pays an annual dividend of $2.50 per share. This dividend has remained constant over the past few years and is expected to remain constant for some time to come. If you want to earn 12% on an investment in the company's shares, how much should you pay to purchase each share?
A) $20.83
B) $25.00
C) $18.88
D) $12.50
Correct Answer:
Verified
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