Question
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 14%. Last year's dividend, Div0, was $ $1.75 per share.
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 14%. Last year's dividend, Div0, was $ $1.75 per share. Investors want a return of 17% on this stock. What is the stock's price if
a.the company will be in business for 10 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 25 years and not have a liquidating dividend?
d.the company will be in business for 45 years and not have a liquidating dividend?
e.the company will be in business for 90 years and not have a liquidating dividend?
f.the company will be in business forever?
(Round to the nearest cent.)
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