Question
The Sky is the Limit manufactures drone fireworks for public and private events. The company paid a dividend in the amount of $9.90 on each
The Sky is the Limit manufactures drone fireworks for public and private events. The company paid a dividend in the amount of $9.90 on each share just a couple of days ago. The CEO of the company has recently decided - and posted in its public newsletter - that from now on the dividend payout will be reduced each year by 5 percent. Investors believe that this trend will continue indefinitely. You think an annual return of 14 percent is appropriate for this company's stock. Based on the above information, what is the maximum that you would be willing to pay today for each share of this company's stock? (Do not round any of your intermediate calculations. Your final answer should be rounded to 2 decimal places, e.g., 32.16.) |
The current share price?
Please show how to find on BA II Plus Calculator and/or Excel.
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