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QUESTION 16 Sholve Corp. currently offers annual dividends of $2.56, is expected to offer $4 89 per share in dividends over the next year, and
QUESTION 16 Sholve Corp. currently offers annual dividends of $2.56, is expected to offer $4 89 per share in dividends over the next year, and $4.49 per share in dividends the year after that. At the end of the second year the stock is expected to sell for $21.07 per share. If your required rate of return is 17%, how much are you willing to pay for the stock today? Round to two decimal places (Ex $0.00). (Hint: are dividends growing constantly?)
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