How much would one be willing to pay per share

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Question 1: The stock of Ford Motor company currently pays a dividend at the rate of $3. This dividend is expected to grow at an annual rate of 1% for the next 3 years. The dividend is expected to increase by $1 in year 4 and to grow at a constant annual rate of 6% thereafter. If one requires a 24% rate of return on an investment such as this, how much would one be willing to pay per share?

Reference no: EM132487631

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