lnfty.com [4]

lnfty.com will generate forever a before-tax cash flow of $15. The corporate tax rate is 50%. The risk free rate is 10%. 20.1 Dividend Inc [2]

The stock price of Dividend, Inc is 30 November 139. 1 December the stock goes ex dividend, paying a cash dividend of 11. The owners of stock in Dividend, Inc do not pay tax on their dividend income. What is your estimate of the stock price 2 December?