Dune Desalination Inc. will begin paying semiannual dividends 3 years from now. The market expects Dune's rst

Dune Desalination Inc. will begin paying semiannual dividends 3 years from now. The market expects Dune's first dividend to be $2.20 and then grow its divends by 2.4% per year with semiannual compounding. If your next best invesment of similar risk yields 53 bps per month.

What is a share of Dune worth?

Answer rating: 100% (QA)

We must ascertain the current value of each anticipated future dividend in order to evalu... View the full answer