Valuation of company share

Business & Finance
Price: $10 USD

Question description

Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $3 per share and has announced that it will increase the dividend by $5 per share for each of the next five years, and then never pay another dividend. If you require a return of 11 percent on the company’s stock, how much will you pay for a share today? (Round your answer to 2 decimal places. (e.g., 32.16))

 Current share price

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(Top Tutor) Daniel C.
School: Boston College
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