Question
Use the following information to answer questions 15 and 16. Siesta Corp. will pay a dividend of $7 per year for the next 10 years,
Use the following information to answer questions 15 and 16.
Siesta Corp. will pay a dividend of $7 per year for the next 10 years, and then stop paying dividends forever. The required rate of the return from stocks in this risk class is 14 percent.
What should be the market price of the stock at present?| 36.51 |
| 20.54 |
| 2.80 |
| 70.00 |
| 7.00 |
| 17.33 |
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Accounting Theory Conceptual Issues in a Political and Economic Environment
Authors: Harry I. Wolk, James L. Dodd, John J. Rozycki
9th edition
9781483375014, 1483375013, 9781506300108, 1506300103, 978-1483375021
