What is the maximum that she should be willing to pay for


Janice plans to buy 300 shares of common stock today and sell in six years. She expects to received a cash dividend of 3.10 over the next six years. Thereafter, dividends are expected to grownth imdefinitely at 1.5% If she can invest in a smilar stock with a cost of equity of 13.5% , what is the maximum that she should be willing to pay for each share of this stock? What will be the cost of the investment?

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Financial Management: What is the maximum that she should be willing to pay for
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