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Maritime Bank recently announced that its next semiannual dividend to be paid six months from now) will be $1.00 per share. A stock analyst's best

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Maritime Bank recently announced that its next semiannual dividend to be paid six months from now) will be $1.00 per share. A stock analyst's best estimate for the growth in future dividends is 5% compounded semiannually. (Do not round the intermediate calculations, Round your answers to the nearest cent.) o. If you require a rate of return of 10% compounded semiannually on the stock, what maximum price should you be willing to pay per share? ignore the present value of dividends beyond a 50 year time horizon Maximum price $0 b. What price do you obtain if you do not ignore dividends beyond 50 years? (Hint: Use a large value, say 999, forn in the present value calculation) Maximum price

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