Question
DEF Industries will pay a regular dividend of $3.15 per share for each of the next 3 years. At the end of the 3 years,
DEF Industries will pay a regular dividend of $3.15 per share for each of the next 3 years. At the end of the 3 years, the company will also pay out a $21 per share liquidating dividend, and the company will cease operations. If the discount rate is 8.78 percent, what is the current value of the company's stock? Answer to two decimals. Carry intermediate calculations to four decimals.
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Personal Finance
Authors: Jack Kapoor, Les Dlabay, Robert Hughes
4th Edition
0256147175, 978-0256147179
