You want to purchase some shares of Auto Board stock but need a 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant R4,90 annual dividend per share? 1. R25,40 2. R32,67 3. R59,33 4. R70,87

You want to purchase some shares of Auto Board stock but need a 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant R4,90 annual dividend per share? 1. R25,40 2. R32,67 3. R59,33 4. R70,87

Corporate Fin Focused Approach

5th Edition

ISBN:9781285660516

Author:EHRHARDT

Publisher:EHRHARDT

Chapter7: Valuation Of Stocks And Corporations

Section: Chapter Questions

Problem 22SP

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