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Q23) Pearson Co. is a mature manufacturing firm. The company just paid a $4.00 dividend, but the management expects to reduce this payout by 6%

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Q23) Pearson Co. is a mature manufacturing firm. The company just paid a $4.00 dividend, but the management expects to reduce this payout by 6% per year indefinitely. If the required rate of return on this stock is 15%, what will you pay for a share today? (Ans. $17.90)

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