JEN Corp. is expected to pay a dividend of $4.00 per year indefinitely.

JEN Corp. is expected to pay a dividend of $4.00 per year indefinitely. If the appropriate rate of return on this stock is 10 percent per year, and the stock consistently goes ex-dividend 10 days before dividend payment date, what will be the expected maximum price in light of the dividend payment logistics?

So the maximum stock price, which will occur right before the stock goes ex-dividend, will be:
P= $4.00/[(1+0.000261)10th power]}+ {($4.00/0.10) × (1/[(1+0.000261)10th power]= $43.89

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