Explain business selling software

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Suppose that a friend has started a business selling software. The software is a great? hit, and the firm quickly grows large enough to be able to sell stock. Your? friend's firm promises to pay a dividend of ?$8 per share every year for the next 47 ?years, at which point your friend intends to shut down the business. The? firm's stock is currently selling for ?$97 per share. If you believe that the company really will pay dividends as stated and if you require a rate of return of 9?% to make this? investment, should you buy the? stock?

Reference no: EM133003751

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