A company is expected to pay a dividend of $0.80 per share every year indefinitely. If the current price of the share is $18.90, and the equity cost of capital for the company is 6.4%, what price would an investor be expected to pay per share five years into the future?

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The Answer of A company is expected to pay a dividend of $0.80 per share every year indefinitely. If the current price of the share is $18.90, and the equity cost of capital for the company is 6.4%, what price would an investor be expected to pay per share five years into the future?

A Company Is Expected to Pay a Dividend of $0