Question
Nofal Corporation will pay a $4.70 per share dividend next year. The company pledges to increase its dividend by 7.25 percent per year, indefinitely. Required:
| Nofal Corporation will pay a $4.70 per share dividend next year. The company pledges to increase its dividend by 7.25 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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Applied Conic Finance
Authors: Dilip Madan, Wim Schoutens
1st Edition
1107151694, 978-1107151697
