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Stock price with known dividends and sale price Agnes wants to purchase common stock of New Frontier Inc. and hold it for 3 years. The

Stock price with known dividends and sale price

Agnes wants to purchase common stock of New Frontier Inc. and hold it for 3 years. The directors of the company just announced that they expect to pay an annual cash dividend of $6.00 per share for the next 7 years. Agnes believes that she will be able to sell the stock for $70 at the end of seven years. In order to earn 12% on this investment, how much should Agnes pay for this stock?

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