Exhibit 8.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROB…
Exhibit 8.1 USE THE INFORMATION BELOW FOR THE FOLLOWING PROBLEM(S) Davenport Corporation’s last dividend was $2.70, and the directors expect to maintain the historic 3 percent annual rate of growth. You plan to purchase the stock today because you feel that the growth rate will increase to 5 percent for the next three years and the stock will then reach $25 per share. Refer to Exhibit 8.1. How much should you be willing to pay for the stock if you require a 17 percent return?