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The Textbook Production Company has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate
The Textbook Production Company has been hit hard due to increased competition. The company's analysts predict that earnings (and dividends) will decline at a rate of 5 percent (negative 5 percent) annually forever. Assume that required rate of return is 11% and D0 = $4.00. What is the price of the company's stock today?
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