Answer:
The you should expect to pay $45.45
Explanation:
Paticulars Amount
D2 = (ke-g)P1
D2 = (16% - 10%)*50
D2 = (6%)*50
D2 = 3
D1 = 3/1.10 2.7273
P0 =D1/(ke - g)
P0 =2.7273/(16%-10%)
P0 =2.7273/6%
P0 = 45.45
Therefore, The you should expect to pay $45.45
