Question 20 You want to purchase some shares of Auto Board stock but need a 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per...

Question 20

You want to purchase some shares of Auto Board stock but need a 15% rate of return to compensate for the perceived risk of such ownership. What is the maximum you are willing to spend per share to buy this stock if the company pays a constant R4,90 annual dividend per share?

1. R25,40