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Astro Burger announced today that it will begin paying annual dividends. The first dividend of $0.51 will be paid in one year. The second and
Astro Burger announced today that it will begin paying annual dividends. The first dividend of $0.51 will be paid in one year. The second and third annual dividends will be $0.56 and $0.71, respectively. The forth annual dividend will be $1.01, and subsequent dividends will increase at 3.5 percent per year in perpetuity. If your required return is 9 percent annually, how much are you willing to pay today to buy this stock? |
A. $19.67
B. $19.01
C. $3.92
D. $15.67
E. $19.52
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