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Finance Assignment | Top Essay Writing

Question #2: Stock Valuation [10 Points] Maxim Integrated Products has paid a constant annual dividend payment of $1.80 per share. Suppose that you expect that Maxim Integrated Products will continue to pay this constant dividend payment for the foreseeable future.
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(a) What is the most you would be willing to pay for a share of Maxim Integrated Products if you have a required return of 9.4%? Round your answer to two decimal places. [4 Points]
(b) Suppose that the board of directors of Maxim Integrated Products makes a surprise announcement that they plan to grow the dividend payment to 3.33% annually (g = 0.0333) from now on. Given this new information, what is the most you would be willing to pay for a share of Maxim Integrated Products if you have a required return of 9.4%? Round your answer to two decimal places. [6 Points] Get Finance homework help today

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