Question
Nofal Corporation will pay a $4.40 per share dividend next year. The company pledges to increase its dividend by 5.75 percent per year, indefinitely. Required:
Nofal Corporation will pay a $4.40 per share dividend next year. The company pledges to increase its dividend by 5.75 percent per year, indefinitely.
Required: If you require a return of 10 percent on your investment, how much will you pay for the companys stock today? (Do not round intermediate calculations. Round your answer to 2 decimal places (e.g., 32.16).)
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
10th edition
978-1337902571, 1337902578, 978-1337911054, 1337911054, 978-0324272055
