Final answer:
To determine the dividend that Tomer Corp will pay next year, we need to calculate the present value of future dividends based on the given information. The price per share of stock in Babble, Inc. would be approximately $256,500.
Step-by-step explanation:
To determine the value of a share of stock in Babble, Inc., we need to calculate the present value of the future dividends that the company is expected to pay out. Based on the given information, the company will pay out $15 million in the present, $20 million in one year, and $25 million in two years. We will calculate the present value of these dividends using a discount rate of interest.
Next, we add up all the present values for the different time periods to get a final answer. In this case, the total present value of dividends is approximately $51.3 million. To determine the price per share, we divide the total present value by the number of shares, which is 200. Therefore, the investor would pay approximately $256,500 per share of stock in Babble, Inc.
It is important to note that the expected profits and the discount rate used are estimates and may vary in real-world scenarios.