menu-iconExamlexExamLexServices

Discover

Ask a Question
  1. All Topics
  2. Topic
    Business
  3. Study Set
    Corporate Financial Management
  4. Exam
    Exam 20: Mergers
  5. Question
    What Should an Investor Pay for Shares in Which the Rate
Solved

What Should an Investor Pay for Shares in Which the Rate

Question 3

Question 3

Multiple Choice

What should an investor pay for shares in which the rate of return for the risk class is 10 per cent, a dividend of 44p will be paid after 1 year, and the share price after 1 year is expected to be 220p?


A) 270p
B) 224p
C) 214p
D) 240p

Correct Answer:

verifed

Verified

Related Questions

Q1: Which two terms correctly complete the following

Q2: Last year a company had earnings per

Q4: Which three of the following are assets

Q5: Which two of the following are factors

Q6: Which three of the following are models

Q7: The dividend paid by a company in

Q8: What are the two key conclusions that

Q9: Which of the following is calculated using

Q10: Which three of the following are most

Q11: Which model requires the discounting of the

Examlex

ExamLex

About UsContact UsPerks CenterHomeschoolingTest Prep

Work With Us

Campus RepresentativeInfluencers

Links

FaqPricingChrome Extension

Download The App

Get App StoreGet Google Play

Policies

Privacy PolicyTerms of ServiceHonor CodeCommunity Guidelines

Scan To Download

qr-code

Copyright © (2025) ExamLex LLC.

Privacy PolicyTerms Of ServiceHonor CodeCommunity Guidelines