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This question was created from Chapter 7 Chapter End Problems.pdf https://www.coursehero.com/file/28822420/Chapter-7-Chapter-End-Problemspdf/

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1. Anderson Motors Inc. has just set the company dividend policy at $0.80 per year. The
company plans to be in business forever. What is the price of this stock if
a. An investor wants a 5% return?
I). An investor wants an 8% return?
c. An investor wants a 10% return?
d. An investor wants a 12.5% return?
6. An investor wants a 20% return?

Top Answer

Answer a) Price of this Stock = 16 b) Price of this... View the full answer

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