Coffeeta Co. will pay a dividend of $4.45 per share in year one, $5.55 per share in year two, and $6.75 per share in year
Coffeeta Co. will pay a dividend of $4.45 per share in year one, $5.55 per share in year two, and $6.75 per share in year three. In year four, you think that Starbucks Company will buy Coffeeta Co. at $62.00 per share and all Coffeeta Co. stock owners will be paid $62.00 per share at the closing. The required return rate is 9.6%. So, what is the present value of Coffeeta Co.s stock?
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Authors: William Brueggeman, Jeffrey Fisher
17th Edition
1264072945, 978-1264072941
