Welcome to Westonci.ca, your ultimate destination for finding answers to a wide range of questions from experts. Explore thousands of questions and answers from knowledgeable experts in various fields on our Q&A platform. Explore comprehensive solutions to your questions from knowledgeable professionals across various fields on our platform.

Laurie, a CEO, wants to enact a dividend policy which combats inflation. Today, she just paid an annual dividend of $1. Her plan is to grow this dividend by 2.50% next year and each following year. Currently, the market expects an annual return of 4.75% for investments of similar risk. What is a fair price for Laurie’s stock?