Find maximum price that willing to pay for company-s stock


Merriweather Manufacturing Company has been growing at a rate of 6 percent for the past two years, and the company"s CEO expects it to continue to grow at this rate for the next several years. The company paid a dividend of $1.20 last year. If your required rate of return is 14 percent, what is the maximum price that you would be willing to pay for this company"s stock?

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Finance Basics: Find maximum price that willing to pay for company-s stock
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