Answer to Question #159988 in Financial Math for KINDA

Question #159988

Company ABC offers a common stock that pays an annual dividend of $3 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 10% return on your investment?

Expert's answer

X*0.1=3, then x=3/0.1=30

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