23Question 12: Mad Max Inc. has a dividend policy that increases annual dividends by 3% each year. If last year'sdividend was $2.50, the company intends to stay in business for 50 years, and an investor wants a 11% return, whatwould be the price of Mind Max stock?Refer proble

Step 1: Calculate the next year's expected dividend (D1).D1 = D0 × (1 + g)D1 = $2.50 × (1 + 0.03) =…

Answered: 23 Question 12: Mad Max Inc. has a…

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Chapter7: Stocks (equity) - Characterstics And Valuation

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23 Question 12: Mad Max Inc. has a dividend policy that increases annual dividends by 3% each year. If last year's dividend was $2.50, the company intends to stay in business for 50 years, and an investor wants a 11% return, what would be the price of Mind Max stock? Refer proble