Question

Jade Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in

the amount of $0.25 per share. The following dividends will be $0.42, $0.59, and $0.78 per share annually for the following three years, respectively. After that, dividends are projected to increase by 3.9% per year.

How much are you willing to pay to buy one share of this stock if your desired rate of return is 7%? (Round answer to 2 decimal places, round intermediate calculations to 5 decimal places)

Current Share Price

Looking for a Similar Assignment? Order now and Get 10% Discount! Use Coupon Code "Newclient"