Dividend is expected to increase thereafter

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Reference no: EM131324817

A company recently announced that it will pay its first annual dividend one year from today in the amount of $0.45 per share. The dividend is expected to increase thereafter by 4% annually. How much are you willing to pay today for one share of this stock if you require a 10% rate of return on investments of this risk?

Reference no: EM131324817

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