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
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
Chapter7: Common Stock: Characteristics, Valuation, And Issuance
Section: Chapter Questions
Problem 6P
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