Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.80, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return of 9.5 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimel places, e.g., 32.16.) Current share price
Antiques R Us is a mature manufacturing firm. The company just paid a dividend of $9.80, but management expects to reduce the payout by 4 percent per year indefinitely. If you require a return of 9.5 percent on this stock, what will you pay for a share today? (Do not round intermediate calculations and round your answer to 2 decimel places, e.g., 32.16.) Current share price
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
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Transcribed Image Text:Antiques R Us is a mature manufacturing firm. The company just paid a dividend of
$9.80, but management expects to reduce the payout by 4 percent per year indefinitely.
If you require a return of 9.5 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.)
Current share price
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