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To purchase shares of Kronos Worldwide Inc. (ticker symbol: KRO), Steven Beauchamp requires a return of 8.50%. Kronos, which just paid an annual dividend of
To purchase shares of Kronos Worldwide Inc. (ticker symbol: KRO), Steven Beauchamp requires a return of 8.50%. Kronos, which just paid an annual dividend of $1.10 per share, expects to grow its annual dividend by 24% per year for the next 4 years. A 5% constant growth rate is subsequently expected. How much will Mr. Beauchamp pay today for one share of Kronos?
$45.73 $57.36 $62.51 $52.25 $49.32Step by Step Solution
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