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Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend, to be paid in three days,
Sessler Manufacturers made two announcements concerning its common stock today. First, the company announced that the next annual dividend, to be paid in three days, will be $1.65 a share. Secondly, all dividends after that will increase by 1.5 percent for the foreseeable future. What is the maximum amount you should pay to purchase a share of this stock today if you require a 16 percent rate of return?
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