Pfender Guitars has a current annual cash dividend policy of $4 00 The price of the stock is set to yield an 8 return What is the price of this stock if the dividend will be paid a for 10 years and then a liquidating or final dividend of $25 00 b for 15 years and then a liquidating or final dividen...

Use the finite constant dividend model liquidating dividend exce ...

Pfender Guitars has a current annual cash dividend policy of $4.00. The price of the stock is

Question:

Pfender Guitars has a current annual cash policy of $4.00. The price of the stock is set to yield an 8% return. What is the price of this stock if the will be paid
a. for 10 years and then a liquidating or final of $25.00?
b. for 15 years and then a liquidating or final of $25.00?
c. for 40 years and then a liquidating or final of $25.00?
d. for 60 years and then a liquidating or final of $25.00?
e. for 100 years and then a liquidating or final of $25.00?
f. forever with no liquidating Dividend
A dividend is a distribution of a portion of company’s earnings, decided and managed by the company’s board of directors, and paid to the shareholders. Dividends are given on the shares. It is a token reward paid to the shareholders for their...