Odd dividend policy-how much will you pay for share today

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Reference no: EM132018490

Osbourne, Inc., has an odd dividend policy. The company has just paid a dividend of $5 per share and has announced that it will increase the dividend by $6 per share for each of the next five years, and then never pay another dividend. If you require a return of 12 percent on the company’s stock, how much will you pay for a share today?

Reference no: EM132018490

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