In: Finance
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10%. Last year's dividend, Div 0, was $ 1.50 per share. Investors want a return of 17% on this stock. What is the stock's price if a. the company will be in business for 10 years and not have a liquidating dividend? b. the company will be in business for 20 years and not have a liquidating dividend? c. the company will be in business for 30 years and not have a liquidating dividend? d. the company will be in business for 45 years and not have a liquidating dividend? e. the company will be in business for 90 years and not have a liquidating dividend? f. the company will be in business forever? a. What is the price of this stock if the company will be in business for 10 years and not have a liquidating dividend?