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J&J Tools pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $.25 a share
J&J Tools pays no dividend at the present time. The company plans to start paying an annual dividend in the amount of $.25 a share for 3 years commencing next year. After the 3 years, the company plans on paying a constant $1 a share dividend indefinitely. How much are you willing to pay to buy a share of this stock if your required return is 13%? a. $4.72 b. $5.92 c. $6.35 d. $5.45 e. $4.99
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