Constant dividend-return on your equity investments

Assignment Help Financial Management

Reference no: EM13811272

Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.10 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 12.60 percent return on your equity investments?

$10.50

$26.46

$16.67

$6.00

$14.70

Reference no: EM13811272

Questions Cloud

Advantages of using surveys to collect data : What is survey research? What are the advantages and disadvantages of using surveys to collect data? Describe a research situation where survey research is appropriate and explain why

Develop one or two specific hypotheses for your research : Based on that management dilemma, define a possible management question and accompanying research question. Then, develop one or two specific hypotheses for your research question that might account for misdirected or dropped calls

What types of research might toyota have : Toyota had a problem with unexplained acceleration problems in some of its top models. It closed down plants and stopped production on several models. What types of research might Toyota have conducted to make these decisions

Differences between deterministic and probabilistic models : Provide examples of decision problems you face frequently under the four different states of the decision environment. What are the primary differences between deterministic and probabilistic models?

Constant dividend-return on your equity investments : Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.10 a share. The company has promised to maintain a constant dividend. How much are you willing to pay for one share of this stock if you want to earn a 12.60 per..

Shareholders as the annual dividend : Michael's, Inc. just paid $2.75 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.90 percent. If you require a rate of return of 10.1 percent, how much are you willing to p..

Which mutually exclusive project should be selected : Which mutually exclusive project should be selected, based on a 12% cost of capital and the following: IRR(A)= 15%, IRR(B)= 13%; incremental IRR(B-A)= 18%? Why?

Determine the total tax revenue for the state : The department of revenue estimates that the average tax revenue from each citizen is as follows: income tax, $800; sales tax, $150; personal property tax, $250. In addition, the average corporate tax is $7,500 per company. Develop a model that will ..

Total deductions from the scholarship and work-study wages : You have just been notified by the student aid and scholarships office that you would receive a regents' scholarship of $2,000 for the coming academic year. Furthermore, your application for a work-study program has also been accepted. You estimate t..

User Account

All Pages