Nu-Tek Inc. recently announced that it will pay its first annual dividend of $0.50 per share within one year. The dividend will be increased by 50% annually for the following two years, after which the increase will be limited to 2.5% per year. If you need a 14% rate of return, how much are you willing to pay for a share of this stock today?

Answer rating: 100% (QA)

SOLUTION To calculate the value of a share of NuTek Inc stock today we need to determine the present ... View the full answer