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Burnett Corporation pays a constant $18 dividend on its stock. The company will maintain this dividend for the next 5 years and will then cease
Burnett Corporation pays a constant $18 dividend on its stock. The company will maintain this dividend for the next 5 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? Multiple Choice $76.31 $73.51 $90.00 $68.61 $70.01 Metallica Bearings, Incorporated, is a young start-up company. No dividends will be paid on the stock over the next 12 years because the firm needs to plow back its earnings to fuel growth. The company will pay a dividend of $13 per share 13 years from today and will increase the dividend by 6 percent per year thereafter. If the required return on this stock is 10 percent, what is the current share price? Multiple Choice $106.66 $94.14 $98.38 $103.56 $108.73
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