Homework answers / question archive / How much would a rational investor be prepared to pay for a share in two years' time that pays a $5

How much would a rational investor be prepared to pay for a share in two years' time that pays a $5

Finance

Share With

How much would a rational investor be prepared to pay for a share in two years' time that pays a $5.15 dividend every year and is currently priced at $68.67? Assume the required rate of return is 7.5% p.a.