Problem:
You are considering a share of Edie's common stock. You expect to sell it at the end of one year for $32.00. You will also receive a divided of $2.50 at the end of the year. Edie just paid a dividend of $2.25. If your required return on this stock is 12%,
Required:
Question 1: What is the most you should pay for it?
Note: Explain all steps comprehensively.