Solution-Determining how much pay for a share

Determining how much pay for a share

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Stoneworks, Inc., has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a return of 14 percent on the company's stock, how much will you pay for a share today?

Reference no: EM133059781

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Determining how much pay for a share

Reference no: EM133059781

Reference no: EM133059781

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