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Gen Corp. Is expected to pay a dividend of $4.10 per year Indefinitely. The appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex- dividend 35 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Minimum stock price What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Maximum stock price $

Gen Corp. Is expected to pay a dividend of $4.10 per year Indefinitely. The appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex- dividend 35 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Minimum stock price What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Maximum stock price $

FINANCIAL ACCOUNTING
FINANCIAL ACCOUNTING
10th Edition
ISBN:9781259964947
Author:Libby
Publisher:Libby
Chapter1: Financial Statements And Business Decisions
Section: Chapter Questions
Problem 1Q
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Gen Corp. Is expected to pay a dividend of $4.10 per year Indefinitely. The appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex- dividend 35 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Minimum stock price What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Maximum stock price
Transcribed Image Text:Gen Corp. Is expected to pay a dividend of $4.10 per year Indefinitely. The appropriate rate of return on this stock is 11 percent per year, and the stock consistently goes ex- dividend 35 days before dividend payment date. What will be the expected minimum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Minimum stock price What will be the expected maximum price in light of the dividend payment logistics? (Use 365 days a year. Do not round Intermediate calculations and round your final answer to 2 decimal places.) Maximum stock price
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