Blasco just paid an annual dividend of $1.63 a share.What is one share of this stock worth to you if the dividends increase by 3 percent annually and you require a rate of return of 14 percent?

Name: Blasco just paid an annual dividend of $1.63 a share.What is one share of this stock worth to you if the dividends increase by 3 percent annually and you require a rate of return of 14 percent?
Brand: Quizplus
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Question

Quizplus · Accepted Answer

P₀= [$1.63 × (1 + 0.03)] / (0.14 − 0.03) P₀ = $15.26

Blasco Just Paid an Annual Dividend of $1