At that time it will pay an annual dividend

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Reference no: EM131495483

Inman Company is a growing company and does not expect to start dividends for 10 years. At that time it will pay an annual dividend of $2.50 per share. At that time, Inman expects its dividends to grow at 6% forever. You are interested in purchasing Inman stock if you can earn an 11% required rate of return.

If you buy the Inman stock today and hold it for 10 years. What you expect the price to be at that time?

What is the most you would pay today for one share of Inman stock?

Please show work

Reference no: EM131495483

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