How much are you willing to pay today to purchase one share

Reference no: EM132000351

Question: Michael's, Inc. just paid $2.50 to its shareholders as the annual dividend. Simultaneously, the company announced that future dividends will be increasing by 5.40 percent. If you require a rate of return of 9.6 percent, how much are you willing to pay today to purchase one share of Michael's stock?

Reference no: EM132000351

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