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Her Majesty's Secret service is facing an uncertain financial future. The cormpany expects that they will only have enough cash flow to continue paying their
Her Majesty's Secret service is facing an uncertain financial future. The cormpany expects that they will only have enough cash flow to continue paying their current dividend for 5 more years before they must stop paying a dividend altogether. HMSS has just paid a dividend of $18.82, and will continue to pay the same dividend for the next 5 years, after which they will never pay another dividend. What is the value of their stock if the discount rate is 5.73% ? a. $76.80 b. $78.16 c. $86.66 d. 584.61 e. $79.86
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