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    Amount to pay for share of Miller Brothers and Jumbo Trout stock

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    Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 percent rate of return, how much are you willing to pay to purchase one share of this stock today?

    A) $12.23

    B) $12.55

    C) $12.67

    D) $12.72

    How much are you willing to pay for one share of Jumbo Trout stock if the company just paid a $0.70 annual dividend, the dividends increase by 1.6 percent annually, and you require a 10 percent rate of return?

    Question 2 options:

    A) $8.29

    B) $8.33

    C) $8.47

    D) $8.53

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    https://brainmass.com/business/accounting/amount-pay-share-miller-brothers-jumbo-trout-stock-412681

    Solution Preview

    Miller Brothers Hardware paid an annual dividend of $1.15 per share last month. Today, the company announced that future dividends will be increasing by 2.6 percent annually. If you require a 12 ...

    Solution Summary

    The amounts to pay for shares of Miller Brothers and Jumbo Trout stocks are examined.

    $2.19

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