Problemthe company has just paid a dividend of 6 per share, Ask an Expert

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Problem:

The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend.

Required:

Question: If the required return is 11 percent, how much will you pay for a share today?

Note: Show all workings.

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Accounting Basics, Accounting

Category:- Accounting Basics
Reference No.:- M91169658

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