What is most that will be willing to pay for common stock

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You are considering the purchase of Crown Bakery, Inc. common stock that just paid a dividend of $11.36 per share. You expect the dividend to grow at a rate of 3.96 percent per year, indefinitely. You estimate the rate of return of 8.38%, will be adequate compensation for this investment.

Problem 1:
What is the most that you will be willing to pay for the common stock if you were to purchase it today?

Reference no: EM133010533

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