What will be the cost of the investment

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Reference no: EM131890914

Janice plans to buy 300 shares of common stock today and sell in six years. She expects to received a cash dividend of 3.10 over the next six years. Thereafter, dividends are expected to grownth imdefinitely at 1.5% If she can invest in a smilar stock with a cost of equity of 13.5% , what is the maximum that she should be willing to pay for each share of this stock? What will be the cost of the investment?

Reference no: EM131890914

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