Question
General Importers announced that it will pay a dividend of $4.05 per share one year from today. After that, the company expects a slowdown in
General Importers announced that it will pay a dividend of $4.05 per share one year from today. After that, the company expects a slowdown in its business and will not pay a dividend for the next 5 years. Then, 7 years from today, the company will begin paying an annual dividend of $2.15 forever. The required return is 12.2 percent. What is the price of the stock today?
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Investment Analysis And Portfolio Management
Authors: Frank K. Reilly, Peggy L. Hedges, Philip Chang, Keith C. Brown, Hedges Reilly Brown
1st Canadian Edition
0176500693, 978-0176500696
