What is the most you would pay for a share of miller

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The Miller Milk Company has just come up with a new lactose-free dessert product for people who can't eat or drink ordinary dairy products. Management expects the new product to fuel sales growth at 31% for about two years. After that competitors will copy the idea and produce similar products, and growth will return to about 2%, which is normal for the dairy industry in the area. Miller recendy paid an annual dividend of S2.50, which will grow with the company. The return on stocks similar to Miller's is typically around 10%. What is the most you would pay for a share of Miller? Round PVF values in intermediate calcualtions to four decimal places. Round the answer to two decimal places.$

Reference no: EM131068293

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