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What is the maximum amount should pay to purchase a share

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Reference no: EM132919882

Problem 1: Mini Mart made two announcements concerning its common stock today. First, the company announced that its next annual dividend has been set at $2.51 a share. Secondly, the company announced that all future dividends will increase by 5% annually. What is the maximum amount you should pay to purchase a share of Mini Mart's stock if your goal is to earn a 10% rate of return?

Reference no: EM132919882

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