Problem:
Leslie's Unique Clothing Stores offers a common stock that pays an annual dividend of $2.10 a share. The company has promised to maintain a constant dividend.
Required:
How much are you willing to pay for one share of this stock if you want to earn a 12.2 percent return on your equity investments?
- $14.29
- $10.50
- $21.00
- $17.21
- $18.72
Note: Please explain comprehensively and give step by step solution.