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What is the maximum price that a prudent investor

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Reference no: EM131542758

Valorous Corporation will pay a dividend of $1.80 per share at this? year's end and a dividend of $2.45 per share at the end of next year. It is expected that the price of? Valorous' stock will be $41 per share after two years. If Valorous has an equity cost of capital of 8?%,

What is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock? today?

A 7.00

B. 14.00

C. 21.00

D. 28.00

Reference no: EM131542758

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