How much are you willing to pay to buy one share

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Reference no: EM131913258

NU YU announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $.25 a share. The following dividends will be $.40, $.60, and $.75 a share annually for the following three years, respectively.

After that, dividends are projected to increase by 3.5% per year.

How much are you willing to pay to buy one share of this stock if your desired rate of return is 12%?

Reference no: EM131913258

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