What is the maximum price that a prudent investor

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Valorous Corporation will pay a dividend of $1.85 per share at this? year's end and a dividend of $2.40 per share at the end of next year. It is expected that the price of? Valorous' stock will be $43 per share after two years. If Valorous has an equity cost of capital of 8?%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock? today?

Reference no: EM132681652

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