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Assume Coleco pays an annual dividend of $1.48 and has a share price of $37.27. It announces that its annual dividend will increase to $1.78.
Assume Coleco pays an annual dividend of $1.48 and has a share price of $37.27. It announces that its annual dividend will increase to $1.78. If its dividend yield stays the same, what should be its new share price? The new price will be $ . (Round to the nearest cent.) Achi Corp. has preferred stock with an annual dividend of $3.13. If the required return on Achi's preferred stock is 8.3%, what is its price? (Hint: For a preferred stock, the dividend growth rate is zero.) Achi's stock price will be $ . (Round to the nearest cent.)
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