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Managerial Finance (MBA 5323) Stock Valuation, hwk #14 due 11:50 p.m., 2/28/22 1. = (Assumption #1) NJK Industries pays semiannual dividends on its outstanding common
Managerial Finance (MBA 5323) Stock Valuation, hwk #14 due 11:50 p.m., 2/28/22 1. = (Assumption #1) NJK Industries pays semiannual dividends on its outstanding common stock. It just paid a dividend of Do = $1.50 per share. NJK expects the dividend to remain constant into the foreseeable future (i.e., for a really long time). A. Draw a timeline showing the next four dividend amounts for this company (i.e., D1, D2, D3, and D4). B. If your required rate of return on NJK stock is 2.5% per year, compounded semiannually, what is your estimate of the stock's value? C. Assume a market price of $105.00 per share for NJK stock. What is the (expected, realized) return on the stock at this price
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