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Bella Industries has traditionally paid an annual dividend with a steady growth rate of 2%. Due to COVID, they are now in a state of
Bella Industries has traditionally paid an annual dividend with a steady growth rate of 2%. Due to COVID, they are now in a state of decline and must adjust downward their dividend. Last year they paid an annual dividend of $3.70. They now expect to have growth indefinitely of -1.2% per year. They have a cost of capital of 9.9%. What do you estimate their current stock price to be?
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