Share of this stock if your required rate of return

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Orca, Inc. announced today that it will begin paying annual dividends. The first dividend will be paid next year in the amount of $1.74 a share. The following dividends will be $1.41, $1.99, and $2.2 a share annually for the following three years, respectively. After that, dividends are projected to increase by 4 percent per year. How much are you willing to pay today to buy one share of this stock if your required rate of return is 13.1 percent?

Reference no: EM131055349

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