Question
Valorous Corporation will pay a dividend of $ 1.70 per share at this year's end and a dividend of $ 2.50 per share at the
Valorous Corporation will pay a dividend of
$ 1.70
per share at this year's end and a dividend of
$ 2.50
per share at the end of next year. It is expected that the price of Valorous' stock will be
$ 42
per share after two years. If Valorous has an equity cost of capital of
10%,
what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?
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Principles Of Project Finance
Authors: E. R. Yescombe
2nd Edition
0123910587, 9780123910585
