In Response to the Stock Market's Reaction to Its Dividend

question 14

Essay

In response to the stock market's reaction to its dividend policy, the Nico's Toy Company has decided to increase its dividend payment at a rate of 4 percent per year. The firm's most recent dividend is $3.25 and the required rate of interest is 9 percent. What is the maximum you would be willing to pay for a share of the stock?

---

Definitions:

Thesaurus

A reference tool that lists words grouped together according to similarity of meaning (containing synonyms and sometimes antonyms).

Synonyms

Words that have different spellings but share the same or nearly the same meaning, often used to enrich language and avoid repetition.

Note Reference Mark

A symbol or number placed in a document that refers the reader to a footnote or endnote containing additional information.

Backspace

A keyboard key that deletes characters to the left of the cursor's current position or moves the cursor back in a document.