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How much will you pay for a share today

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Question - Bon Chance, Inc., has an odd dividend policy. The company has just paid a dividend of $10.50 per share and has announced that it will increase the dividend by $8.50 per share for each of the next four years, and then never pay another dividend.

If you require a return of 14 percent on the company's stock, how much will you pay for a share today?

Reference no: EM132850395

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