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A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 3.75% a year for the
A company is expecting its sales to decline and has announced that it will be reducing its annual dividend by 3.75% 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 $1.70 per share. What is this stock worth if you require a 7.75% rate of return?
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