Dharma and Greg, Inc., has an odd dividend policy. The company has just paid a dividend of

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Dharma and Greg, 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 \($1\) per share for each of the next four years, and then never pay another dividend. If you require an 11 percent return on the company’s stock, how much will you pay for a share today?

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Fundamentals Of Corporate Finance

ISBN: 9780072313000

5th Edition

Authors: Stephen A Ross, Randolph W Westerfield

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