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Coal Corp is a declining business. Dividends are expected to decline at a constant 6%, and the next dividend is expected be $4.00 per share.
Coal Corp is a declining business. Dividends are expected to decline at a constant 6%, and the next dividend is expected be $4.00 per share. The required rate of return on the stock is 10%. Investor Sally uses the discounted dividend mode value Coal Corp's stock. Based on her estimate of the stock's value: A. Sally would be willing to buy the stock if it was selling at $30 per share B. Sally would be willing to buy the stock if it was selling at $40 per share C. Sally would be willing to buy the stock if it was selling at $50 per share Callould not be willing to buy the stock at anvefthocenricos
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