Hot Wings, Inc has an odd divdend policy. The company has just paid a dividend of $8.10 per share and has announced that it will increase the dividend by $6.10 per share for each of the next four years, and then never pay another dividend. Required: If you require a 13.50 percent return on the company's stock, how much will you pay for a share today?

Hot Wings, Inc has an odd divdend policy. The company has just paid a dividend of $8.10 per share and has announced that it will increase the dividend by $6.10 per share for each of the next four years, and then never pay another dividend. Required: If you require a 13.50 percent return on the company's stock, how much will you pay for a share today?

EBK CFIN

6th Edition

ISBN:9781337671743

Author:BESLEY

Publisher:BESLEY

Chapter7: Stocks (equity) - Characterstics And Valuation

Section: Chapter Questions

Problem 14PROB

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