What is the maximum price that a rational risk-averse


1. VNZ corporation will pay a dividend of $1.80 per share at this year’s end and a dividend of $2.40 per share at the end of the next year.

2. Investors believe(or expected) that after 2 years the company’s stock will have a price of $44per share. If the form’s cost of equity capital is 8% , what is the maximum price that a rational, risk-averse, investors would be willing to pay for the company’s stock today?

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Financial Management: What is the maximum price that a rational risk-averse
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