Question
The Red Bud Co. pays a constant dividend of $1.50 a share. The company announced today that it will continue to do this for another
The Red Bud Co. pays a constant dividend of $1.50 a share. The company announced today that it will continue to do this for another 2 years after which time they will discontinue paying dividends permanently. What is one share of this stock worth today if the required rate of return is 7.1 percent?
| $1.66 | |
| $4.21 | |
| $3.00 | |
| $1.61 | |
| $2.71 |
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Forecasting Principles And Practice
Authors: Rob J Hyndman, George Athanasopoulos
3rd Edition
0987507133, 978-0987507136
