What should be the market value of minimight''s stock today

Reference no: EM131394045

Minimight Company has never paid a dividend, and there are no plans to pay dividends during the next three years. But, in four years-that is, at the end of Year 4-the company expects to start paying a dividend equal to $3 per share. This same dividend will be paid for the remainder of Minimight's existence. If investors require a 10 percent rate of return to purchase the company's common stock, what should be the market value of Minimight's stock today?

Reference no: EM131394045

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