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Home Q & A Board Science-Related Homework Help Mathematics
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Krispylynn33 Krispylynn33
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A year ago
Maritime Bank recently announced that its next semiannual dividend (to be paid six months from now) will be $1.00 per share. A stock analyst's best estimate for the growth in future dividends is 5% compounded semiannually.


a) If you require a rate of return of 10% compounded semiannually on the stock, what maximum price should you be willing to pay per share? Ignore the present value of dividends beyond a 50-year time horizon.
b) What price do you obtain if you do not ignore dividends beyond 50 years? (Hint: Use a large value, say 99,999, for n in the present value calculation.)
Textbook 
Business Mathematics in Canada

Business Mathematics in Canada


Edition: 11th
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nikki24303nikki24303
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A year ago
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Krispylynn33 Author
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A year ago
I appreciate what you did here, answered it right Smiling Face with Open Mouth
jamesbove
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Yesterday
Helped a lot
bbbbbbbh
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2 hours ago
Thank you, thank you, thank you!
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