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Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, Indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $ 117.00

Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, Indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $ 117.00

Essentials Of Investments
Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Chapter1: Investments: Background And Issues
Section: Chapter Questions
Problem 1PS
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If you require a return of 12 percent on this stock, what will you pay for a share today?

Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, Indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $ 117.00
Transcribed Image Text:Antiques 'R' Us is a mature manufacturing firm. The company just paid a dividend of $11.70, but management expects to reduce the payout by 4.5 percent per year, Indefinitely. If you require a return of 12 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.) Share price $ 117.00
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