Business, 08.11.2019 06:31, ally6977

Atlantic corp. just paid an annual dividend of $1.50 per share on its common stock. dividends are expected to grow at an annual rate of 4% hereafter. if investors require a rate of return of 8% on atlantic stock, what is the most they should be willing to pay for a share of this stock today?

a) $18.75.
b) $37.50.
c) $39.00.
d) $49.31

Answers: 2

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