A stock is expected to pay dividends in 8 periods.  The first dividend will be $2.55 and subsequent dividends are forecasted to stay constant for the foreseeable future.  If the required return on the stock is 11.0%, what is its current value?

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 stock is expected to pay dividends in 8 periods.  The first dividend will be $2.55 and subsequent dividends are forecasted to stay constant for the foreseeable future.  If the required return on the stock is 11.0%, what is its current value? 

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