Logo
Home Study Material Contact Search
AI Chat FREE
  1. business
  2. finance
  3. 9. boilermaker inc. just announced that it will in

9. Boilermaker Inc. just announced that it will increase the annual dividend to $1.75 in...

90.2K

Verified Solution

Question

Finance

image

9. Boilermaker Inc. just announced that it will increase the annual dividend to $1.75 in the next year and establish a policy whereby the dividend will increase by 2 percent annually thereafter. How much will one share of this stock be worth six years from now if the required rate of return is 14.5 percent? A. $14.00 B. $14.28 C. $14.84 D. $15.77 E. $16.08 10. Pluto Corporation just paid a $1.80 per share annual dividend last month. The company is planning on paying $2.00, $2.50, $2.75, and $3.00 a share over the next four years, respectively. After that the dividend will be constant at $3.20 per share per year. What is the market price of this stock if the market rate of return is 13 percent? A. $7.47 B. $15.96 C. $20.73 D. $22.57 E. $24.37

Answer & Explanation Solved by verified expert
Get Answers to Unlimited Questions

Join us to gain access to millions of questions and expert answers. Enjoy exclusive benefits tailored just for you!

Membership Benefits:
  • Unlimited Question Access with detailed Answers
  • Zin AI - 3 Million Words
  • 10 Dall-E 3 Images
  • 20 Plot Generations
  • Conversation with Dialogue Memory
  • No Ads, Ever!
  • Access to Our Best AI Platform: Flex AI - Your personal assistant for all your inquiries!
Become a Member

Other questions asked by students