Question
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 7.00% a year for the
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 7.00% a year for the next two years. After that, it will maintain a constant dividend of $1.00 a share. Just recently, the company paid a dividend of $3.00 per share. What is this stock worth if you require a 11.00% rate of return?
|
| $11.70 |
|
| $12.00 |
|
| $12.30 |
|
| $12.60 |
|
| $12.90 |
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Physics
Authors: James S. Walker
5th edition
978-0133498493, 9780321909107, 133498492, 0321909100, 978-0321976444
