Question
Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.25 at the end of each of the next 12 quarters. Thereafter, the
Pasqually Mineral Water, Inc., will pay a quarterly dividend per share of $1.25 at the end of each of the next 12 quarters. Thereafter, the dividend will grow at a quarterly rate of 1.9 percent, forever. The appropriate rate of return on the stock is 14 percent, compounded quarterly.
What is the current stock price?
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Financial Institutions Management A Risk Management Approach
Authors: Anthony Saunders, Marcia Millon Cornett
9th edition
1259717771, 1259717772, 9781260048186, 1260048187, 978-1259717772
