How much are you willing to pay to buy share

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Reference no: EM131920130

Yesteryear Productions pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $0.50 a share for two years commencing four years from today. After that time, the company plans on paying a constant $0.85 a share annual dividend indefinitely. How much are you willing to pay to buy a share of this stock today if your required return is 12.6 percent?

Reference no: EM131920130

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