This is a STOCK VALUATION PROBLEM: The second sentence should read: starting in year 11 it will pay a constant dividend of $15 per share. If your required rate of return is 18%, how much should you pay for a share of LJD's common stock?

Inc. is not expected to pay any dividends for the next 10 years. Starting in year 6. LJD 11, it will (i e. level) dividend of Five years from today, it is projected pay a constant pay an initial dividend of $15.00 per share. If your required rate of return is 18%, how much should you pay for a share of I JD's common stock? L mn if ID also paid a dividend of $5 each year