Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10?%....

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Miles Hardware has an annual cash dividend policy that raisesthe dividend each year by 10?%. Last? year's dividend, Div 0?, was$ 1.50 per share. Investors want a return of 18?% on this stock.What is the? stock's price if
a.??the company will be in business for 10 years and not have aliquidating? dividend?
b.??the company will be in business for 20 years and not have aliquidating? dividend?
c.??the company will be in business for 30 years and not have aliquidating? dividend?
d.??the company will be in business for 40 years and not have aliquidating? dividend?
e.??the company will be in business for 80 years and not have aliquidating? dividend?
f.???the company will be in business? forever?
a.??What is the price of this stock if the company will be inbusiness for 10 years and not have a liquidating? dividend?

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4.4 Ratings (946 Votes)

Given D0 150 Growth Rate of dividend g 010 Required rate of return r 018 Let number of years for which dividends are paid be n See Answer

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Miles Hardware has an annual cash dividend policy that raisesthe dividend each year by 10?%. Last? year's dividend, Div 0?, was$ 1.50 per share. Investors want a return of 18?% on this stock.What is the? stock's price ifa.??the company will be in business for 10 years and not have aliquidating? dividend?b.??the company will be in business for 20 years and not have aliquidating? dividend?c.??the company will be in business for 30 years and not have aliquidating? dividend?d.??the company will be in business for 40 years and not have aliquidating? dividend?e.??the company will be in business for 80 years and not have aliquidating? dividend?f.???the company will be in business? forever?a.??What is the price of this stock if the company will be inbusiness for 10 years and not have a liquidating? dividend?