Answer:
$41.912
Explanation:
Data provided in the question;
Annual dividend paid = $3.10
expected growth rate, g = 4% = 0.04
Number of shares planning to buy = 1,000
Market Rate of return = 12% = 0.12
Now,
the current price of the share =
or
the current price of the share =
or
the current price of the share = $40.3
Therefore,
Price per share next year = current price of the share × (1 + g)
= $40.3 × (1 + 0.04)
= $41.912
a small piece of ownership in a company - stock
a company’s initial offering of stock - IPO
a portfolio of stocks and bonds - mutual funds
a public stock exchange - NASDAQ
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