Question
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 13%. Last year's dividend,Div0,was $1.25 per share. Investors want a
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 13%. Last year's dividend,Div0,was $1.25 per share. Investors want a return of 16%
on this stock. What is the stock's price if
a.the company will be in business for 5 years and not have a liquidating dividend?
b.the company will be in business for 15 years and not have a liquidating dividend?
c.the company will be in business for 30 years and not have a liquidating dividend?
d.the company will be in business for 50 years and not have a liquidating dividend?
e.the company will be in business for 85 years and not have a liquidating dividend?
f.the company will be in business forever?
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The New CFO Financial Leadership Manual
Authors: Steven M. Bragg
3rd Edition
0470882565, 978-0470882566
