Question
Pfender Guitars has a current annual cash dividend policy of $6.00. The price of the stock is set to yield a return of 10%. What
Pfender Guitars has a current annual cash dividend policy of $6.00. The price of the stock is set to yield a return of 10%.
What is the price of this stock if the dividend will be paid
a.for 10 years and then the company repurchases the stock for $30?
b.for 14 years and then the company repurchases the stock for $30?
c.for 50 years and then the company repurchases the stock for $30?
d.for 60 years and then the company repurchases the stock for $30?
e.for 100 years and then the company repurchases the stock for $30?
f.forever with no repurchase of the stock?
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