How much would investor be willing to pay for share of stock

Reference no: EM131796518

Question: At the last Board of Directors meeting of Williams Enterprises, it was decided to encourage the current CEO by giving a substantial bonus. Not only did she make few if any mistakes, in fact, the dividend was raised by 3% every year for the last 10 years, like clockwork. Assuming the last dividend the CEO declared was $1.50 per share, how much would an investor be willing to pay for one share of stock given a required return of 12% per year and which growth model is represented?

Reference no: EM131796518

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