A mature manufacturing firm just paid a dividend of $422 but management expects to reduce the payout by 2.13 percent per year, indefinitely. If you require a return of 9.1 percent on this stock, what will you pay for a share today? Answer to two decimals.

Intermediate Financial Management (MindTap Course List)
13th Edition
ISBN:9781337395083
Author:Eugene F. Brigham, Phillip R. Daves
Publisher:Eugene F. Brigham, Phillip R. Daves
Chapter8: Basic Stock Valuation
Section: Chapter Questions
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A mature manufacturing firm just paid a dividend of $422 but management expects to reduce the
payout by 2.13 percent per year, indefinitely. If you require a return of 9.1 percent on this stock, what
will you pay for a share today? Answer to two decimals.
Transcribed Image Text:A mature manufacturing firm just paid a dividend of $422 but management expects to reduce the payout by 2.13 percent per year, indefinitely. If you require a return of 9.1 percent on this stock, what will you pay for a share today? Answer to two decimals.
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