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

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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 ...

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