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Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.16 a share. Secondly, the company announced that all future
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Angelina's made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.16 a share. Secondly, the company announced that all future dividends will increase by 4% annually. What is the maximum amount you should pay to purchase a share of Angelina's stock if your goal is to earn a 10% rate of return?

A. $21.60
B. $22.46
C. $27.44
D. $34.62
E. $36.00

User Darshan Puranik
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4 votes
D 34.62 is the answer (sorry if I’m wrong)
User Shikkediel
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