JEN Corp. is expected to pay a dividend of $5.50 per year indefinitely. If the appropriate
JEN Corp. is expected to pay a dividend of $5.50 per year indefinitely. If the appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex-dividend 30 days before dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?
*Show your work
A) $49.57
B) $55.03
C) $44.07
D) $50.00
Abhinav
05-Dec-2019