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A company will pay a dividend of $6.65, $10.75, and $13.95 per share for each of the next three years, respectively. Afterwards, it will
A company will pay a dividend of $6.65, $10.75, and $13.95 per share for each of the next three years, respectively. Afterwards, it will stop paying dividends indefinitely. What should you be willing to pay for one share of this stock, if you require 8 percent return?
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SOLUTION To calculate the present value of the future dividends we can use the formula ...
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Contemporary Financial Management
Authors: James R Mcguigan, R Charles Moyer, William J Kretlow
10th Edition
978-0324289114, 0324289111
