Nu - Tek, Inc. is preparing to pay their first dividend a year from today. They are going to pay $0.76, $1.38 and $1.57 per share over the next three years respectively. After that, the company has stated that the annual dividend will be $2.23 per share indefinitely. What is this stock worth to you today, if you demand a 13.23% rate on investment? 1. $15.12 2. $13.35 3. $14.43 4. Need information on growth rate of dividends to proceed. 5. $10.38

EBK CONTEMPORARY FINANCIAL MANAGEMENT
14th Edition
ISBN:9781337514835
Author:MOYER
Publisher:MOYER
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
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Nu - Tek, Inc. is preparing to pay their first
dividend a year from today. They are going to
pay $0.76, $1.38 and $1.57 per share over the next
three years respectively. After that, the company
has stated that the annual dividend will be $2.23
per share indefinitely. What is this stock worth to
you today, if you demand a 13.23% rate on
investment? 1. $15.12 2. $13.35 3. $14.43 4. Need
information on growth rate of dividends to
proceed. 5. $10.38
Transcribed Image Text:Nu - Tek, Inc. is preparing to pay their first dividend a year from today. They are going to pay $0.76, $1.38 and $1.57 per share over the next three years respectively. After that, the company has stated that the annual dividend will be $2.23 per share indefinitely. What is this stock worth to you today, if you demand a 13.23% rate on investment? 1. $15.12 2. $13.35 3. $14.43 4. Need information on growth rate of dividends to proceed. 5. $10.38
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