What is the most you should be willing to pay

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You are interested in purchasing shares of Techstart Inc., a new technology company. Based on your research, you believe the company will have three very good years, but may not do well after that. You think the stock will pay a dividend of $2 next year and $3 for the following two years. By then you believe the stock will be selling for $75 per share, at which price you'll sell anything you buy now. People who have invested in stocks like Techstart are currently earning returns of 14%. What is the most you should be willing to pay for a share of Techstart?

Reference no: EM131571929

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