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How much would you pay for a stock that is expected to pay its first dividend of $510-years from now($5 at t=10 and $0 from
How much would you pay for a stock that is expected to pay its first dividend of $510-years from now($5 at t=10 and $0 from t=0 to t=9)) if you expect dividends to then grow by 4% per year after that (t=11 to infinity). Assume your required rate of return is 10%?
35.34
83.33
33.41
36.76
86.67
32.13
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