Question
ABC Inc is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The company will pay next year
ABC Inc is losing significant market share and thus its managers have decided to decrease the firm's annual dividend. The company will pay next year an annual dividend of $0.86 a share but all future dividends will be decreased by 3.5 percent annually. What is a share of this stock worth today at a required return of 17.8 percent?
| $4.04 | ||
| $3.95 | ||
| $3.06 | ||
| $3.59 | ||
| $3.90 |
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Intermediate Accounting IFRS
Authors: Donald E. Kieso, Jerry J. Weygandt, Terry D. Warfield
3rd edition
1119372933, 978-1119372936
