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Question 13 Suppose a company currently pays a $2.40 annual dividend on its common stock in a single annual installment, and management plans on raising
Question 13
- Suppose a company currently pays a $2.40 annual dividend on its common stock
in a single annual installment, and management plans on raising this dividend by 6 percent per year indefinitely. If the required return on this stock is 12 percent, what is the current share price?
- Now suppose the company actually pays its annual dividend in equal quarterly installments. So what will be quarterly dividend payment?
solve by using formulas
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