The Spinnaker Company has paid an annual dividend of $2 per share for some time. Recently, however,

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The Spinnaker Company has paid an annual dividend of $2 per share for some time. Recently, however, the board of directors voted to grow the dividend by 6% per year from now on. What is the most you would be willing to pay for a share of Spinnaker if you expect a 10% return on your stock investments?

Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...
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