Chapter 6 Problem 4: Stock Values Mickelson Corporation will pay a $2.90 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely. IF you require an 11 percent return on your investment, how much will you pay for the companys stock today? CHAPTER 6: PROBLEM 4 Dividend $2.90 Dividend increase per year 4.75% Required Return (Return on Investment) 11% Stock Price =