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April 21, 2014

Homework Help: business finance

Posted by james on Monday, June 25, 2012 at 2:28pm.

Hot Wings, Inc., has an odd dividend policy. The company has just paid a dividend of $11.25 per share and has announced that it will increase the dividend by $9.25 per share for each of the next four years, and then never pay another dividend.

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If you require a 13 percent return on the company’s stock, how much will you pay for a share today

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