[Answer] Michael's Inc. just paid $2.15 to its shareholders as the annual dividend. Simultaneously the company announced that future dividends will be increasing by 4.70 percent. If you require a rate of return of 8.9 percent how much are you willing to pay today to purchase one share of Michael's stock?

Answer: P0 = [$2.15 × (1 + 0.047)] / (0.089 - 0.047) = $53.60

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Michael's Inc. just paid $2.15 to its shareholders as the annual dividend. Simultaneously the company announced that future dividends will be increasing by 4.70 percent. If you require a rate of return of 8.9 percent how much are you willing to pay today to purchase one share of Michael's stock? Michael's Inc. just paid $2.15 to its shareholders as the annual dividend. Simultaneously the company announced that future dividends will be increasing by 4.70 percent. If you require a rate of return of 8.9 percent how much are you willing to pay today to purchase one share of Michael's stock ? Michaels Inc . just paid $2.15 to its shareholders as the annual dividend . Simultaneously the company announced that future dividends will be increasing by 4.7 percent . If you require a rate of return of 8.9 percent how much are you willing to pay today to purchase one share of the company s stock ? Michael's Inc . just paid $2.45 to its shareholders as the annual dividend . Simultaneously the company announced that future dividends will be increasing by 5.30 percent . If you require a rate of return of 9.5 percent how much are you willing to pay today to purchase one share of Michael's stock ? Michael's Inc . just paid $2.65 to its shareholders as the annual dividend . Simultaneously the company announced that future dividends will be increasing by 5.70 percent . If you require a rate of return of 9.9 percent how much are you willing to pay today to purchase one share of Michael's stock ? Michael's Inc . just paid $2.05 to its shareholders as the annual dividend . Simultaneously the company announced that future dividends will be increasing by 4.5 percent . If you require a rat...

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