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Antiques R Us is a mature manufacturing firm. The company plans to pay an $8 dividend next year, but management expects to reduce the payout

Antiques R Us is a mature manufacturing firm. The company plans to pay an $8 dividend next year, but management expects to reduce the payout by 7 percent per year, indefinitely. If you require a 13 percent return on this stock, what will you pay for a share today?

answer: $40.00

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