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Hightower Pharmacy just paid a $3.10 annual dividend. The company has a policy of increasing the dividend by 3.8 percent annually. You would like to

  1. Hightower Pharmacy just paid a $3.10 annual dividend. The company has a policy of increasing the dividend by 3.8 percent annually. You would like to purchase 100 shares of stock in this firm but realize that you will not have the funds to do so for another four years. If you require a 16 percent rate of return, how much will you be willing to pay per share for the 100 shares when you can afford to make this investment?

    A. $29.50 B. $30.62 C. $31.12 D. $31.78 E. $32.47

note:

i solve it as we want to find the p4, but i saw some people solve it as they want to find the p5, what is the correct way and why?

thank u

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