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Boomer Products, Inc. manufactures no-inhale cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest
Boomer Products, Inc. manufactures "no-inhale" cigarettes. As their target customers age and pass on, sales of the product are expected to decline. Thus, demographics suggest that earnings and dividends will decline at a rate of 8%
annually forever. The firm just paid a dividend of 4.00 dollars; the required return is 12%. Given these parameters, the price of the stock in 5 years will be
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