About the odd dividend policy

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Reference no: EM131064575

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $8.75 per share and has announced that it will increase the dividend by $6.75 per share for each of the next four years, and then never pay another dividend. Required: If you require a return of 13 percent on the company’s stock, how much will you pay for a share today?

Reference no: EM131064575

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