Question
The Sly Fox pays a constant dividend of $1.46. The company announced today that is will continue to pay the dividend for another 2 years
The Sly Fox pays a constant dividend of $1.46. The company announced today that is will continue to pay the dividend for another 2 years and then in year 3 it will pay a final liquidating dividend of $15.25 a share. What is the one share of this stock worth today at the required return of 18.5 percent?
Answer: $11.44
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Fundamentals of Financial Management
Authors: Eugene F. Brigham, Joel F. Houston
11th edition
324422870, 324422873, 978-0324302691
