Question
JJ Industries will pay a regular dividend of $1.60 per share for each of the next four years. At the end of the four years,
JJ Industries will pay a regular dividend of $1.60 per share for each of the next four years. At the end of the four years, the company will also pay out a liquidating dividend of $53 per share, and the company will cease operations. If the discount rate is 7 percent, what is the current value of the company’s stock? (Do not round intermediate calculations. Round your answer to 2 decimal places.)
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Fundamentals of Investments Valuation and Management
Authors: Bradford Jordan, Thomas Miller
7th edition
978-0078096785, 78096782, 978-0077861636, 77861639, 978-0078115660
