Michael\'s, Inc. just paid $2.35 to its shareholders as the annual dividend. Sim

Question

Michael's, Inc. just paid $2.35 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.10 percent. If you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of Michael's stock?

Michael's, Inc. just paid $2.35 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.10 percent. If you require a rate of return of 9.3 percent, how much are you willing to pay today to purchase one share of Michael's stock?

Explanation / Answer

$58.81

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