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The Red Bud Company pays a constant dividend of $3.40 a share. The company announced today that it will continue to do this for another
The Red Bud Company pays a constant dividend of $3.40 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 9.0 percent? A) $6.80 B) $3.71 C) $3.87 D) $5.98 E) $9.38
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