business finance

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.

Required:

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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  1. uhjoi

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  2. 77.49

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  3. Ans-98.06

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