A share of stock in Pria-Utang Corporation pays an annual dividend of $5. The current market price is $60. From the list of individuals below, identify who is likely to be a buyer or a seller of this stock. (Each person currently owns 100 shares.)Individual Required Return Expected Growth in Dividends Buy orSell? Janey 10% 6% .Jimmy 12% 2% . Jonny 20%5% .

Janey will BUY, Jimmy will SELL and Jonny will SELL.

Explanation:

According to the scenario, the given data are as follows:

Annual dividend = $5

Current market price = $60

Now first we calculate the value of the stocks, hence,

Value of the share

1. Janey = ( 5 × (1 + 6%)) ÷ (10% - 6%)

= ( 5 × 1.06) ÷ (0.04)

= 132.50

So, Janey will BUY because market price is lower than value  of the share

2.  Jimmy = ( 5 × (1 + 2%)) ÷ (12% - 2%)

= ( 5 × 1.02) ÷ (0.1)

= 51.00

So, Jimmy will SELL because market price is higher than value  of the share.

3. Jonny = ( 5 × (1 + 5%)) ÷ (20% - 5%)

= ( 5 × 1.05) ÷ (0.15)

= 35.00

So, Jonny will SELL because market price is higher than value  of the share.

answer; the cpi;