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Suppose the goddess tells you that GDL will pay a dividend of $1.20 per share one-year from now and $1.45 per share two-years from now.
Suppose the goddess tells you that GDL will pay a dividend of $1.20 per share one-year from now and $1.45 per share two-years from now. She also tells you that the stock will sell for $38 two-years from now. If you want to make a return of 10% per year on an investment in GDL stock, what is the most you would pay for a share today? Hint: This is a PV
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