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Unique stores common stock pays a constant annual dividend of $1.75 a share. What is the...

Unique stores common stock pays a constant annual dividend of $1.75 a share. What is the value of this stock at a discount rate of 13.25 percent?

a. $12.50
b. $13.33
c. $13.21
d. $12.88
e. $14.18

(Please show steps and you can use a financial calculator as well).

Solutions

Expert Solution

The annual Dividend =1.75
Discount rate =13.25%
The value of stock =Annual Dividend/Discount Rate =1.75/13.25% =13.21 (Option c is correct option)

jeff jeffy answered 2 years ago
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