Question
A firm has just declared that its dividend next year will be $5 per share. That rate of payment will continue for an additional 3
A firm has just declared that its dividend next year will be $5 per share. That rate of payment will continue for an additional 3 years, after which the dividends will fall back to their usual $4 per share. The discount rate is 8%.
What is the present value of all the future dividends?(Round answer to 2 decimal places, e.g. 125.12. Do not round your intermediate calculations.)
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Financial Markets and Institutions
Authors: Frederic S. Mishkin, Stanley G. Eakins
5th edition
321280299, 321280296, 978-0321280299
