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Staton-Smith Software is a new start-up company and will not pay dividends for the first five years of operation. It wil
Posted: Wed Jul 06, 2022 6:44 pm
by answerhappygod
- Staton Smith Software Is A New Start Up Company And Will Not Pay Dividends For The First Five Years Of Operation It Wil 1 (24.37 KiB) Viewed 18 times
Staton-Smith Software is a new start-up
company and will not pay dividends for the first five years of operation. It will then institute an annual cash dividend policy of $4.50 with a constant growth rate of 6%, with the first dividend at the end of year six. The
company will be in business for 25 years total. What is the stock's price if an investor wants a. a return of 12%? b. a return of 14%? c. a return of 22%? d. a return of 38%? a. What is the stock's price if an investor wants a return of 12%? (Round to the nearest cent)