Question
Cullumber Corp. has been selling electrical supplies for the past 20 years. The companys product line has changed very little in the past five years,
Cullumber Corp. has been selling electrical supplies for the past 20 years. The companys product line has changed very little in the past five years, and the companys management does not expect to add any new items for the foreseeable future. Last year, the company paid a dividend of $5.70 to its common stockholders. The company is not expected to increase its dividends for the next several years. If your required rate of return for such firms is 12 percent, what is the current value of this companys stock?(Round answer to 2 decimal places, e.g. 15.25.) Sunland, Inc., has outstanding bonds that will mature in six years and pay an 8 percent coupon semiannually. If you paid $1,129.72 today and your required rate of return was 4.8 percent. (Round intermediate calculations to 5 decimal places, e.g. 1.25145 and final answer to 2 decimal places, e.g. 15.25.)
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