Question: (10 pts) Using the table below, what is the maximum that an investor should 6. be willing to pay for the share of common stock

(10 pts) Using the table below, what is the maximum that an investor should 6. be willing to pay for the share of common stock today? Table below to be used with problem #6: Variable Value Explanation Dividend 15%,3%|5% for next 2 years (annual growth estimate Current $1.00 Paid to shareholders on record as dividend Beta2.0 coefficient Expected | 12.0% | Expected (annual) return on the market return estimate) and 3% per year indefinitely thereafter. 4/28/19 Current estimate S&P 500 Index | 5.0% | Expected 10-year Treasury bond yield RFR

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