Geo inc. has paid annual dividends of $.41, $.47, and $.52 a share over the past three years, respectively. the company now predicts that it will maintain a constant dividend since its business has leveled off and sales are expected to remain relatively flat. given the lack of future growth, you will only buy this stock if you can earn at least a rate of return of 16 percent. what is the maximum amount you are willing to pay for one share of this stock today

Grant, inc., acquired 30% of south co.’s voting stock for $200,000 on january 2, year 1, and did not elect the fair value option. the price equaled the carrying amount and the fair value of the interest purchased in south’s net assets. grant’s 30% interest in south gave grant the ability to exercise significant influence over south’s operating and financial policies. during year 1, south earned $80,000 and paid dividends of $50,000. south reported earnings of $100,000 for the 6 months ended june 30, year 2, and $200,000 for the year ended december 31, year 2. on july 1, year 2, grant sold half of its stock in south for $150,000 cash. south paid dividends of $60,000 on october 1, year 2. before income taxes, what amount should grant include in its year 1 income statement as a result of the investment?