McMillan Company is not expected to pay a dividend until five years have elapsed. At the beginning of Year 6, investors

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answerhappygod
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McMillan Company is not expected to pay a dividend until five years have elapsed. At the beginning of Year 6, investors

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McMillan Company is not expected to pay a dividend until five
years have elapsed. At the beginning of Year 6, investors expect
the dividend to be $3 per share and to remain that amount forever.
If an investor has a 25 percent required rate of return for this
stock, what should he or she be willing to pay for
McMillan?
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