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    Paying for Shares

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    What would you pay for a share of ABC Corporation stock today if the next dividend will be $2 per share, your required return on equity investments is 12%, and the stock is expected to be worth $110 one year from now?

    © BrainMass Inc. brainmass.com June 3, 2020, 7:12 pm ad1c9bdddf
    https://brainmass.com/business/accounting/paying-for-shares-90026

    Solution Summary

    This solution provides calculations for finding the amount of a share that needs to be paid.

    $2.19

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