What is the maximum amount you are willing to pay for share

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Reference no: EM131992396

Star Party Boat Group is estimated to pay no dividends over the next three years. The company will pay an annual dividend of $2 in year four and will maintain a constant annual dividend growth rate of 1.2 percent thereafter.

You will only buy this stock if you can earn at least a 2.8 percent rate of return.

What is the maximum amount you are willing to pay for one share of this stock today? Keep two decimal places.

Reference no: EM131992396

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