Question
JJ industries will pay a regular dividend of $2.40 per share for each of the next four years. At the end of the four years,
JJ industries will pay a regular dividend of $2.40 per share for each of the next four years. At the end of the four years, the copany will also pay out a $40 per share liquidating dividend, and the company will cease operations. If the discount rate is 10 percent, what is the current value of the companys stock?
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Public Finance
Authors: Harvey S Rosen
6th Edition
0072374055, 978-0072374056
