2010-01-27_144114_wilshire

2010-01-27_144114_wilshire - foreseeable future determine...

Info iconThis preview shows page 1. Sign up to view the full content.

View Full Document Right Arrow Icon
Wilshire Company's earnings and common stock dividends have been growing at an annual rate of 4 percent over the past several years. The firm currently (t = 0) pays an annual dividend of $4.00. Assuming that Wilshire's common stock dividends continue growing at the past rate for the
Background image of page 1
This is the end of the preview. Sign up to access the rest of the document.

Unformatted text preview: foreseeable future, determine the value of the company's common stock to an investor who requires a 13 percent rate of return on these securities. a. $44.44 b. $36.81 c. $46.22 d. $48.62 P = $4.16/(0.13 - 0.04) = $46.22...
View Full Document

This note was uploaded on 05/21/2011 for the course ECONS 111 taught by Professor Yo during the Spring '09 term at Nassau CC.

Ask a homework question - tutors are online