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Would affect the value of the stock today

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Corn, Inc., has an odd dividend policy. The company has just paid a dividend of $6 per share and has announced that it will increase the dividend by $2 per share for each of the next four years, and then never pay another dividend. suppose you require an 11 percent return on the company's stock.

Required:

a) How much will you pay for a share today?

b) Is the value of this stock dependent upon how long you plan to hold it? Would this affect the value of the stock today?

Reference no: EM132544474

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