Hudson Corporation will pay a dividend of $3.02 per share next year. The company pledges to increase its dividend by 5.5 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price

Essentials Of Investments
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ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
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Problem 8-4 Stock Values [LO1]
Hudson Corporation will pay a dividend of $3.02 per share next year. The company
pledges to increase its dividend by 5.5 percent per year indefinitely. If you require a
return of 10 percent on your investment, how much will you pay for the company's stock
today? (Do not round intermediate calculations and round your answer to 2 decimal
places, e.g., 32.16.)
Stock price
Transcribed Image Text:Problem 8-4 Stock Values [LO1] Hudson Corporation will pay a dividend of $3.02 per share next year. The company pledges to increase its dividend by 5.5 percent per year indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company's stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Stock price
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