Multiple Choice
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
Correct Answer:
Verified
Correct Answer:
Verified
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