What is one share of this stock worth today

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Reference no: EM131991295

Now or Later, Inc. pays an annual dividend to its shareholders. The firm paid a dividend of $0.50 six months ago and the next dividend will be paid 6 months (half a year) from today. Investors expect the next four annual dividend to be $1.00, $2.00, $3.00, and $4.00. After that, investors expect the dividend to grow at 5% per year, forever. What is one share of this stock worth today if the required return is 8%. Round your final answer to the nearest tenth of a dollar (e.g., $92.1)

Reference no: EM131991295

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