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A share of ABC is expected to pay $2.10 of dividends in 1-year from now, $2.17 2-years from now and $2.06 3-years from now. Further,
A share of ABC is expected to pay $2.10 of dividends in 1-year from now, $2.17 2-years from now and $2.06 3-years from now. Further, after the expected dividends are paid out 3-years from now, you expect a share of ABC to fetch $15.17. If the appropriate discount rate given the riskiness of investment is 16.6 percent, what is the maximum you would be willing to pay for a share of ABC?
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