What is most that would 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 $19.59 per share. You expect the dividend to grow at a rate of 1.04 percent per year, indefinitely. You estimate that a required rate of return of 12.18 percent, will be adequate compensation for this investment.

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

Reference no: EM132718193

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