Assume a steel company is willing to sell its alloy beams for $400 a piece and produce 100000 units. At a price of 449 they are
1 answer:
You might be interested in
Answer:
option (C) $1,353
Explanation:
Annual dividend paid = $1.25
Increase in dividend annually, g = 2%
Number of stocks to be purchased = 100
Rate of return, r = 12%
Price at the end of Year 3 =
here, n = 4 (after 3 years)
Price at the end of Year 3 =
or
Price at the end of Year 3 =
or
Price at the end of Year 3 = $13.53
Therefore,
Expected amount to be paid for 100 shares = $13.53 × 100 = $1,353
Hence,
the correct answer is option (C) $1,353