Galloway, Inc. has an odd dividend policy. The company has just paid a dividend of $7 per share and has announced that it will increase the dividend by $2 per share for each of the next 5 years, and then never pay another dividend. How much are you willing to pay per share today to buy this stock if you require a 15 percent return?

Answer rating: 100% (QA)

To determine the value of the stock today we need to calculate the present value of the future divid... View the full answer