You Have Been Researching a Company and Have Estimated That

question 54

Multiple Choice

You have been researching a company and have estimated that the firm's stock will sell for $44 a share one year from now. You also estimate the stock will have a dividend yield of 2.18 percent. How much are you willing to pay per share today to purchase this stock if you desire a total return of 15 percent on your investment?

• A)$37.55
• B)$38.00
• C)$38.24
• D)$39.00
• E)$40.20

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