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You have found the following quote for ABC Enterprises, Inc., in the financial pages of today's newspaper. a . What was the closing price for
You have found the following quote for ABC Enterprises, Inc., in the financial pages of today's
newspaper.
a What was the closing price for this stock that appeared in yesterday's paper? points
b If the company currently has million shares of stock outstanding, what was net income for the
most recent four quarters? points
Problem
The board of a company decides to pay the following dividends over the next four years: $$$ and
$ Afterward, the company pledges to maintain a constant growth rate in dividends forever. As the
financial manager of the company, what will be the current price per share of stock if the required return
on the stock is points
Problem
A mature manufacturing firm just paid a dividend of $ but management expects to reduce the payout by
per year, indefinitely. If you require a return of on this stock, what will you pay for a share of
stock today? Points
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