The return on stocks similar to millers is typically around


The Miller Milk Co. has just come up with a new lactose-free desert product for people can't eat or drink ordinary dairy products. Management expects the new product to fuel sales growth at 30% for about 2 years. After that, competitors will copy the idea and produce similar products and growth will return to about 3%, which is normal for the dairy industry in the area. Miller recently paid a dividend of $2.60, which will grow with the company. The return on stocks similar to Millers is typically around 10%. What is the most you would pay for a share of Miller?

Request for Solution File

Ask an Expert for Answer!!
Finance Basics: The return on stocks similar to millers is typically around
Reference No:- TGS0625229

Expected delivery within 24 Hours