Two announcements concerning its common stock

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Reference no: EM131301078

Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.20 a share. Secondly, the company announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return?

A. $31.60

B. $32.46

C. $37.44

D. $44.00

E. $46.51

Reference no: EM131301078

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