In: Finance
Miles Hardware has an annual cash dividend policy that raises the dividend each year by 10%.
Last year's dividend, Div 0Div0, was $ 1.65 per share. Investors want a return of 16% on this stock. What is the stock's price if
a. the company will be in business for 5 years and not have a liquidating dividend?
b. the company will be in business for 15 years and not have a liquidating dividend?
c. the company will be in business for 25 years and not have a liquidating dividend?
d. the company will be in business for 40 years and not have a liquidating dividend?
e. the company will be in business for 70 years and not have a liquidating dividend?
f. the company will be in business forever?
What is the price of this stock if the company will be in business for (5,15,25,40,70 years, forever), and not have a liquidating dividend? round to nearest cent