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Minimight Company has never paid a dividend, and there are no plans to pay dividends during the next three years. But, in four yearsthat is,
Minimight Company has never paid a dividend, and there are no plans to pay dividends during the next three years. But, in four yearsthat is, at the end of Year 4the company expects to start paying a dividend equal to $3 per share. This same dividend will be paid for the remainder of Minimights existence. If investors require a 10 percent rate of return to purchase the companys common stock, what should be the market value of Minimights stock today? *SET DECIMAL PLACE TO 4 PLACES AND SHOW ALL WORK*
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