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Question 8: Time: 35 minutes Total: 25 marks Yang Inc. is expecting to pay $1.45, $1.40, and $1.35 in annual dividends for the next three

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Question 8: Time: 35 minutes Total: 25 marks Yang Inc. is expecting to pay $1.45, $1.40, and $1.35 in annual dividends for the next three years respectively. After that, it projects that dividends will increase by 4.5% annually. Xuehui is in the 25% marginal tax bracket and wants to earn 21% after-tax on her capital investments. How much is Xuehui willing to pay today for one share of Yang Inc. stock? Ignore the dividend tax credit

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