Poulter Corporation will pay a dividend of $4.25 per share next year. The company pledges to increase its dividend by 6.75 percent per year, indefinitely. If you require a return of 10 percent on your investment, how much will you pay for the company’s stock today? (Do not round intermediate calculations and round your answer to 2 decimal places, e. g., 32.16.)

Current price of stock = $130.76(Approx).

Explanation:

Given:

Dividend paid = $4.25

Required return of return = 10%

Growth rate = 6.75%

Find:

Current price of stock = ?

Computation:

Current price of stock = D1 / (Required return of return - Growth rate)

Current price of stock = 4.25 / (0.1 - 0.0675)

Current price of stock = 4.25 / 0.0325

Current price of stock = $130.76(Approx).

answer is a

explanation:

you will have $2593.74 in 10 years if you set aside $1,000 at 10%

you will have $9321.91 in 20 years if you set aside $2000 at 8%

you will have $1469.32 in 5 years if you set aside $1000 at 8%

you will have $1296.87 in 10 years if you set aside $500 at 10%

you will have $239.66 in 15 years if you set aside $100 at 6%

you will have $4660.96 in 20 years if you set aside $1000 at 8%