4.25 In its most recent corporate report,Williams, Inc., apologized to its stockholders for not paying a dividend.

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4.25 In its most recent corporate report,Williams, Inc., apologized to its stockholders for not paying a dividend. The report states that management will pay a $1 dividend next year.

That dividend will grow at 4 percent every year thereafter. If the discount rate is 10 percent, how much are you willing to pay for a share of Williams, Inc.?

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Corporate Finance

ISBN: 9780071229036

6th International Edition

Authors: Stephen Ross, Randolph Westerfield, Jeffrey Jaffe

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