A company announced recently an increase of their quarterly dividend from $0.05 to $0.06 per share. This continued a long string of double-digit percentage increases in dividends. Suppose you want to use the dividend growth model to value this firm's stock. You believe the dividends will keep growing at 10% per year indefinitely, and you think the market's required rate of return on this stock is 11%. Let's assume the firm pays dividends annually and that the next dividend is expected to be $0.23 per share. The dividend will arrive in exactly one year. What would you pay for the stock right now ? What if you bought the stock today , hold it just long enough to receive the next dividend, and then sell it. What rate of return will you earn on that investment ?