QuestionNorth Great Timber Co. plans a \$1.50 dividend next year, growing at 9%. Analyze price impacts of three strategies.

Studdy Solution
Calculate the price of the stock under the second alternative business strategy$$= \frac{\$.50}{0.04} = \$37.50$$The current price of the stock is $37.50. Under the first alternative business strategy, the price of the stock would decrease to$30.00. Under the second alternative business strategy, the price of the stock would remain the same at $37.50.