You have been researching a company and have estimated that the firm's stock will sell for $44 a share one year from now. You also estimate the stock will have a dividend yield of 2.18 percent. How much are you willing to pay per share today to purchase this stock if you desire a total return of 15 percent on your investment?
A)$37.55
B)$38.00
C)$38.24
D)$39.00
E)$40.20

Question

Quizplus · Accepted Answer

The Answer of You have been researching a company and have estimated that the firm's stock will sell for $44 a share one year from now. You also estimate the stock will have a dividend yield of 2.18 percent. How much are you willing to pay per share today to purchase this stock if you desire a total return of 15 percent on your investment?
A)$37.55
B)$38.00
C)$38.24
D)$39.00
E)$40.20

You Have Been Researching a Company and Have Estimated That