You plan to buy a stock and hold it for one year. You expect the stock price to be $68 per share in one year, and the stock will pay an annual dividend of $1.25. If you want a 14 percent return, what is the maximum amount you are willing to pay for the stock today?
A) $58.32
B) $59.65
C) $60.75
D) $62.12
E) $68.00

Question

Quizplus · Accepted Answer

The Answer of You plan to buy a stock and hold it for one year. You expect the stock price to be $68 per share in one year, and the stock will pay an annual dividend of $1.25. If you want a 14 percent return, what is the maximum amount you are willing to pay for the stock today?
A) $58.32
B) $59.65
C) $60.75
D) $62.12
E) $68.00

You Plan to Buy a Stock and Hold It for One