How much will you pay for a share today

Reference no: EM13301179

Nonconstant Dividends [LO1] Bread, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $4 per share for each of the next five years, and then never pay another dividend. If you require an 11 percent return on the company's stock, how much will you pay for a share today?

Reference no: EM13301179

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