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Scam Corp. pays a constant $5 dividend on its stock at the end of each year. The company will maintain this dividend for the next
Scam Corp. pays a constant $5 dividend on its stock at the end of each year. The company will maintain this dividend for the next 3 years and will then cease to exist and therefore never pay another dividend. If the required return on this stock is 25 percent per year, what is the current share price?
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Financial management theory and practice
Authors: Eugene F. Brigham and Michael C. Ehrhardt
12th Edition
978-0030243998, 30243998, 324422695, 978-0324422696
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