What will the price per share of the stock be in five years

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Reference no: EM131614051

Max Inc pays a dividend of $1.00 per year on its common stock. This dividend is never expected to change. The market expected return on the stock is 15 percent per year.

1. What is the price per share of Max Inc today?

2. What will the price per share of the stock be in 5 years. Show the cash flow for every year.

Please show the work on how to solve the problem and the formulas.

Reference no: EM131614051

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