You Are Considering the Purchase of AMDEX Company Stock

question 43

Essay

You are considering the purchase of AMDEX Company stock. You anticipate that the company will pay dividends of $2.00 per share next year and $2.25 per share the following year. You believe that you can sell the stock for $17.50 per share two years from now. If your required rate of return is 12%, what is the maximum price that you would pay for a share of AMDEX Company stock?

---

Definitions:

Hand Sanitizer

A liquid or gel, often alcohol-based, used to reduce infectious agents on the hands, providing a cleaning effect without the need for water.

Chlorhexidine

An antiseptic used in mouthwash and wound cleansers to reduce bacteria and prevent infections.

Intravenous Line

A medical device used to administer medication, fluids, and nutrients directly into a vein.

Sterile Gloves

Gloves that have been treated to eliminate all forms of microbial life and are used in medical procedures to maintain a sterile environment.