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King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4% .
The most recent dividend, Div 0 , was $0.35 per share. What is the stock's price if a. an investor
wants a return of 7% ? b. an investor wants a return of 8% ? c. an investor wants a return of 11%
? d. an investor wants a return of 12% ? e. an investor wants a return of 17% ?

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King Waterbeds has an annual cash dividend policy that raises the divi.docx

  • 1. King Waterbeds has an annual cash dividend policy that raises the dividend each year by 4% . The most recent dividend, Div 0 , was $0.35 per share. What is the stock's price if a. an investor wants a return of 7% ? b. an investor wants a return of 8% ? c. an investor wants a return of 11% ? d. an investor wants a return of 12% ? e. an investor wants a return of 17% ?