Calculate the maximum you would want to pay for the firm


Due to ongoing capital investments, Lounge Lizards, Inc. doesn't currently pay any dividends. However, four years from now, the firm will pay a $2.50 dividend, and its dividend payment will then increase each year by 5% until perpetuity. If you use a discount rate of 10%, calculate the maximum you would want to pay for the firm's stock today.

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Finance Basics: Calculate the maximum you would want to pay for the firm
Reference No:- TGS0731240

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