Miles Hardware has an annual cash dividend policy that raises the dividend each year by 3%. Last

Question:

Miles Hardware has an annual cash policy that raises the each year by 3%. Last year’s was $1.00 per share. Investors want a 15% return on this stock. What is the stock’s price if
a. The company will be in business for 5 years and not have a liquidating The company will be in business for 15 years and not have a liquidating The company will be in business for 25 years and not have a liquidating The company will be in business for 35 years and not have a liquidating The company will be in business for 75 years and not have a liquidating Forever?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...