You are considering investing in company XYZ's shares. Your required retum is 12%. The company has just paid $5 of dividend. XYZ's dividend is supposed to grow at 0%, and -5% during next 2 years (i.e., the gi
= 0%, and g2 = -5%). After year 2, the growth rate will be constant at 5%. What is the maximum price you
are willing to pay for each share of
company XYZ?