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Please answer all parts of the question. Will thumbs up a complete response! Thank you. P7-4 (similar to 3 Ques Pfender Guitars has a current
Please answer all parts of the question. Will thumbs up a complete response! Thank you.
P7-4 (similar to 3 Ques Pfender Guitars has a current annual cash dividend policy of $5.00. The price of the stock is set to yield a return of 8%. What is the price of this stock if the dividend will be paid a. for 8 years and then the comapny repurchases the stock for $25? b. for 11 years and then the comapny repurchases the stock for $25? c. for 40 years and then the comapny repurchases the stock for $25? d. for 60 years and then the comapny repurchases the stock for $25? e. for 100 years and then the comapny repurchases the stock for $25? f. forever with no repurchase of the stockStep by Step Solution
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