Shares in Brothers Grimm, Inc., manufacturers of gingerbread houses, are expected to pay a dividend of $5 in one year and to sell for $100 per share at that time. How much should you be willing to pay today per share of Grimm if the safe rate of interest is 5 percent and you believe that investing in Grimm carries no risk?
0 Answers | Be the first to answer
We’ve answered 319,882 questions. We can answer yours, too.Ask a question