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Question Help The HH Corporation will pay a constant dividend of $150 pershper your in perpetuty Assume investors pay a 20% taxon dividends and that
Question Help The HH Corporation will pay a constant dividend of $150 pershper your in perpetuty Assume investors pay a 20% taxon dividends and that there is no capital gains ta. The cost of capital for investing in stock is 13 a. What is the price of a share of HH stock? b. Assume that management makes a surprise announcement that will no longer pay dividends but will use the cash to repurchase lock instead What is the price of a shwe of stock now? a. What is the price of a share of HN stock? The price of a share of HH stockis Round to the nearest cent) b. Assume that management makes a surprise anouncement that will no longer pay dividends but will the cash to purchase stock instead What is the price of a share of stock now? The price of a share of Har stock is found to the nearest cont.)
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