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Valorous Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.45 per share at the end of
Valorous Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.45 per share at the end of next year. It is expected that the price of Valorous' stock will be $41 per share after two years. If Valorous has an equity cost of capital of 9%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today? A. $32.45 B. $36.27 C. $38.18 OD. $40.09
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