JAN Corp. will pay a dividend of $0.50 per share one year from now and...
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JAN Corp. will pay a dividend of $0.50 per share one year from now and a dividend of $1.50 per share two years from now. You also expect the stock price to be $10.00 two years from now (immediately after it pays the $1.50 dividend). According to the dividend discount model what should be the price of a share of JAN Corp.s stock? Assume that JAN Corp.s annual cost of equity capital is 9.00%. Round your final answer to two decimal places.
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