Consider mirage inc a firm that specializes in


Consider Mirage, Inc., a firm that specializes in difficult-to-see processes. Claudia has come to know this firm, and thinks it might be a good investment opportunity. She estimates a required rate of return of 15%. (a)If she expects the company to continue to pay the current $2 dividend indefinitely, what is the maximum she should be willing to pay for a share of Mirage stock? (b)Now suppose she expects the dividend to grow at a constant 4% rate. What is the maximum she should be willing to pay?

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Financial Management: Consider mirage inc a firm that specializes in
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