What is the most you would pay for a stock that just paid a $1.50 dividend that is expected to grow annually at 4% if you want a 10% return?
P=D/r-g
P= 1.50(1.04)/.10-.04
P=1.56/.06 = 26
What is the most you would pay for the stock described above if the dividends were constant and your holding period were 35 years?
PLEASE SHOW ALL WORK