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

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Reference no: EM13286526

The Miller Milk Co. has just come up with a new lactose-free desert product for people can't eat or drink ordinary dairy products. Management expects the new product to fuel sales growth at 30% for about 2 years. After that, competitors will copy the idea and produce similar products and growth will return to about 3%, which is normal for the dairy industry in the area. Miller recently paid a dividend of $2.60, which will grow with the company. The return on stocks similar to Millers is typically around 10%. What is the most you would pay for a share of Miller?

Reference no: EM13286526

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