Question
Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for
Sanaponic, Inc. will pay a dividend of $6 for each of the next 3 years, $8 for each of the years 4-7, and $10 for the years 8-10.Thereafter, starting in year 11, the company will pay a constant dividend of $5/year forever.If you require 12 percent rate of return on investments in this risk class, how much is this stock worth to you?
A.$37.77
B.$34.54
C.$55.99
D.$45.68
E.$50.50
F.$41.46
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen
15th edition
77861612, 1259194078, 978-0077861612, 978-1259194078
