2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase...
Fantastic news! We've Found the answer you've been seeking!
Question:
2. InvestPros, Inc., just paid a dividend of $3.00 per share. You expect the dividend to increase by 20% next year, 10% the following two years, and then 4% thereafter. If you require a rate of return of 10%, what is the most you should be willing to pay for a share of InvestPros stock?
Related Book For
Corporate Finance Core Principles And Applications
ISBN: 9781260571127
6th Edition
Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe, Bradford Jordan
Posted Date: