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The company is a profitable company that is expected to pay a $4.25 dividend next year. Because it is depleting its mining properties, the best
The company is a profitable company that is expected to pay a $4.25 dividend next year. Because it is depleting its mining properties, the best estimate is that dividends will decline forever at a rate of 4%. The required rate of return on the company stock is 9%. What is the value of the company shares?
a.
32.69
b.
33.05
c.
32.82
d.
32.75
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