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MBA Industries is a stock that pays a constant cash flow (also known as a dividend) of $4 per year at the end of each
MBA Industries is a stock that pays a constant cash flow (also known as a dividend) of $4 per year at the end of each year which is assumed by investors to be a perpetuity. The discount rate that investors seem to use to discount future cash flows is 8%. Using present value time value of money techniques, what should be todays value of a share of stock in MBA Industries?
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