An investor requires a return of risky security

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An investor requires a return of 12 percent of risky securities. A stock sells for $25, it pays a dividned of $1 and the dividends compound annually at 7%. Will this investor find the stock attractive? What is the maximum amount that this investor should pay for the stock?". an investor requires a return of 12 percent of risky securities. A stock sells for $25, it pays a dividned of $1 and the dividends compound annually at 7%. Will this investor find the stock attractive? What is the maximum amount that this investor should pay for the stock?". 

Reference no: EM13666994

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