Question

King Waterbeds has an annual cash dividend policy that raises the dividend each year by

6​%.

The most recent​ dividend,

Div0​,

was

$0.40

per share. What is the​ stock's price ifa.  an investor wants a return of

7​%?

b.  an investor wants a return of

10​%?

c.  an investor wants a return of

11​%?

d.  an investor wants a return of

14​%?

e.  an investor wants a return of

19​%?

a.  What is the​ stock's price if an investor wants a return of

7​%?

Answer 1