Question
Helicopter Inc. declares the amount it will payout annually and divides it into 4 identical quarterly payments. It announced that it will pay $2.20 over
Helicopter Inc. declares the amount it will payout annually and divides it into 4 identical quarterly payments. It announced that it will pay $2.20 over the next year, which will be paid out as $0.55 quarterly dividends, the first of which will go out in 3 months. Helicopter Inc. has also announced its plans on increasing the annual dividend amount by 3% each year forever. If the required return for Helicopter Inc. is 2.6% quarter, what should the price be today? Round your answer to the nearest penny.
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Foundations of Financial Management
Authors: Stanley Block, Geoffrey Hirt, Bartley Danielsen, Doug Short, Michael Perretta
10th Canadian edition
1259261018, 1259261015, 978-1259024979
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