How much will you pay for the company stock today


Question: Ziggs Corporation will pay a $3.85 per share dividend next year. The company pledges to increase its dividend by 4.75 percent per year, indefinitely. Considering this, answer the following:

If you require a 12 percent return on your investment, how much will you pay for the company's stock today?

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Finance Basics: How much will you pay for the company stock today
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