Odd dividend policy, Maloney, Inc., has an odd dividend

Odd dividend policy

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Reference no: EM131495337

Maloney, Inc., has an odd dividend policy. The company has just paid a dividend of $4 per share and has announced that it will increase the dividend by $4 per share for each of the next five years, and then never pay another dividend. If you require a return of 10 percent on the company’s stock, how much will you pay for a share today?

Reference no: EM131495337

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