Due to increasing competition, j Corporation has seen a steady year-to-year decline in its cash flows. Its revenues are predicted to be 1.10% lower than they were last year and costs are expected to increase due to higher input costs. Sluggish Corporation has just paid an annual dividend of $3.7 and this dividend is expected to decline by 4.0% per year. Investors require a 17.5% annual return. What is the current price per J Corporation share?

Essentials Of Investments
11th Edition
ISBN:9781260013924
Author:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
Publisher:Bodie, Zvi, Kane, Alex, MARCUS, Alan J.
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Due to increasing competition, j Corporation has seen a steady year-to-year
decline in its cash flows. Its revenues are predicted to be 1.10% lower than they
were last year and costs are expected to increase due to higher input costs.
Sluggish Corporation has just paid an annual dividend of $3.7 and this dividend is
expected to decline by 4.0% per year. Investors require a 17.5% annual return.
What is the current price per J Corporation share?
Transcribed Image Text:Due to increasing competition, j Corporation has seen a steady year-to-year decline in its cash flows. Its revenues are predicted to be 1.10% lower than they were last year and costs are expected to increase due to higher input costs. Sluggish Corporation has just paid an annual dividend of $3.7 and this dividend is expected to decline by 4.0% per year. Investors require a 17.5% annual return. What is the current price per J Corporation share?
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