bucksnort I AT&T; LTE 5:25 PM ezto.mheducation.com connect Adan Principles of Fi

Question

bucksnort I AT&T; LTE 5:25 PM ezto.mheducation.com connect Adan Principles of Finance Fail2017 500 points Bucksnort, Inc., has an odd dividend policy. The company has just paid a dividend of $5 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a return of 12 percent on the company's stock, how much will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places e.g, 32.16.) eBook & Resources

Explanation / Answer

pay for stock price today

=11/1.12^1+17/1.12^2+23/1.12^3+29/1.12^4+35/1.12^5

=78.03

the above is the answer

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