Ask Question
BusinessBusiness
22 May, 09:26

Michael's, inc. just paid $2.60 to its shareholders as the annual dividend. simultaneously, the company announced that future dividends will be increasing by 5.60 percent. if you require a rate of return of 9.8 percent, how much are you willing to pay today to purchase one share of michael's stock?

+2
Answers (1)
  1. 22 May, 09:40
    0
    The new dividend with 5.60% increase is $2.7456. To get 9.8% of return she should get the share for $2.50.

    (2.7456 - 2.50) / 2.50 = 9.824
Know the Answer?
Not Sure About the Answer?
Find an answer to your question 👍 “Michael's, inc. just paid $2.60 to its shareholders as the annual dividend. simultaneously, the company announced that future dividends ...” in 📗 Business if the answers seem to be not correct or there’s no answer. Try a smart search to find answers to similar questions.
Search for Other Answers
You Might be Interested in
Obama Company has identified that Bill Clinton's receivable account of $100 is uncollectible. What is the journal entry needed to write off the account under the allowance method?
Answers (1)
Early in your first term as President of the United States you faced an economy in the beginnings of a recession. Which of the following would represent an example of a fiscal policy you might suggest to deal with this situation? A.
Answers (1)
Rally synthesis inc. manufactures and sells 100 bottles per day. fixed costs are $22,000 and the variable costs for manufacturing 100 bottles are $30,000. each bottle is sold for $1,200.
Answers (1)
Bullets spin when shot from a rifle or handgun. What causes this spinning? primer action cartridge rifling
Answers (2)
Collier Company has implemented a just-in-time system, which relies on suppliers to deliver goods for resale as needed.
Answers (1)
New Questions in Business
Q 1.2: the question "how much of our annual budget should we spend to advertise our new product line?" would most likely be asked by a
Answers (1)
If you wanted to find and display a collection of data from a table on a regular weekly basis, what method would you be most likely to use? A. A form B. A field C. A query D. A report
Answers (1)
The equation represents Jordan's overtime pay structure. Based on this equation, what is Jordan's regular hourly pay?
Answers (2)
A concurrent condition occurs when each party's performance is conditioned on the performance of the other.
Answers (1)
Transactional leadership encompasses all but one of the following. Which one? A. Goal settingB. Social interactionC. Monitoring progress toward goal achievementD. Giving feedbackE. Administering discipline
Answers (1)
Home » Business » Michael's, inc. just paid $2.60 to its shareholders as the annual dividend. simultaneously, the company announced that future dividends will be increasing by 5.60 percent. if you require a rate of return of 9.
Sign Up Forgot Password?