McMillan Company is not expected to pay a dividend until five years have elapsed. At the beginning of Year 6, investors
Posted: Tue Nov 16, 2021 7:49 am
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?
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?