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Springtime Cigarettes has found that its expected grwoth rate in earnings and dividends has been declining over the past several years. Hence, the growth rate
Springtime Cigarettes has found that its expected grwoth rate in earnings |
and dividends has been declining over the past several years. |
Hence, the growth rate in earnings and dividendsk has been declining |
by 4% per year. |
Despite this, the firm was able to pay a dividend of $1.00 per share last year. |
The appropriate required return for the firm is 8%. |
What is the fair market value of Springtime today? |
Po = $8.85
Po = $9.00
Po = $8.00
Po = $7.00
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