Problemnofal corporation will pay a 400 per share dividend, Ask an Expert

Finance

Problem:

Nofal Corporation will pay a $4.00 per share dividend next year. The company pledges to increase its dividend by 5.5 percent per year, indefinitely.

Required:

Question: If you require a return of 9 percent on your investment, how much will you pay for the company's stock today?

Note: Please show how to work it out.

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Basic Finance, Finance

Category:- Basic Finance
Reference No.:- M91148363

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