Business, 30.07.2020 21:01 madisyn13

A Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per share at the end of next year. It is expected that the price of its stock will be $42 per share after two years. If the firm has an equity cost of capital of 9%, what is the maximum price that a prudent investor would be willing to pay for a share of the stock today

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A Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.25 per...

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