Valorous Corporation will pay a dividend of $1.75 per share at this year's end and a dividend of $2.35 per share at the end of next year. It is expected that the price of Valorous' stock will be $41 per share after two years. If Valorous has an equity cost of capital of 9%, what is the maximum price that a prudent investor would be willing to pay for a share of Valorous stock today?

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C) Using a financial calculator, 11ea84dc_f561_7df4_9a63_73f76a20f98a_TB1316_11_TB1316_11 11ea84dc_f561_7df5_9a63_23299dd2f841_TB1316_11_TB1316_11 11ea84dc_f561_7df6_9a63_234fad721d62_TB1316_11_TB1316_11 calculate NPV at 11ea84dc_f561_a507_9a63_1bfd7e11ca5a_TB1316_11_TB1316_11 equals $38.09.

Valorous Corporation Will Pay a Dividend of $1