A broker is considering buying a dividend paying stock the


A broker is considering buying a dividend paying stock. The dividend will be paid at the end of the year. The analyst consensus is the stock will worth $36 in one year. The company pays a $2.25 annual dividend and the broker expects 12% rate of return. What is the highest price the broker should be willing to pay for the stock? (Show formula please)

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Financial Management: A broker is considering buying a dividend paying stock the
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