You are looking at various investments and would like to purchase a stock that you expect will pay dividends of $2.50 annually. You expect this stock to be selling on the stock market for $58 one year from now. Assume your required rate of return is 13%. How much should you pay?
Question 18 options:
a)
$55.50
b)
$60.50
c)
$53.54
d)
$49.59