Hailey Corporation pays a constant $14.20 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. Share price
Hailey Corporation pays a constant $14.20 dividend on its stock. The company will maintain this dividend for the next 10 years and will then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price? Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16. 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:Hailey Corporation pays a constant $14.20 dividend on its stock. The company will maintain this dividend for the next 10 years and will
then cease paying dividends forever. If the required return on this stock is 9 percent, what is the current share price?
Note: Do not round intermediate calculations and round your answer to 2 decimal places, e.g., 32.16.
Share price
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