Stoneworks, Inc. has a strange dividend policy. The company just paid a dividend of $8 per share and announced that it would increase the dividend by $5 per share for each of the next five years, and then never pay dividends again. If you need an 11 percent return on the company's stock, 

how much would you pay for a share today? (Do not round up intermediate calculations and round your answer to 2 decimal places, eg 32.16.)

Answer rating: 100% (QA)

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