Mary Smith is interested in buying the stock of Blossom, Inc., which is increasing its dividends at a constant rate of 6.5 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 14.00 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (a1) What is the current value of this stock? (Round answer to 2 decimal places, e.g. 15.20.) Current value $ 27

Mary Smith is interested in buying the stock of Blossom, Inc., which is increasing its dividends at a constant rate of 6.5 percent. Last year the firm paid a dividend of $2.65. The required rate of return is 14.00 percent. Excel Template (Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have different values. When using this template, copy the problem statement from this screen for easy reference to the values you've been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version of the problem.) (a1) What is the current value of this stock? (Round answer to 2 decimal places, e.g. 15.20.) Current value $ 27

International Financial Management

14th Edition

ISBN:9780357130698

Author:Madura

Publisher:Madura

Chapter12: Managing Economic Exposure And Translation Exposure

Section: Chapter Questions

Problem 2IEE

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Question

Mary Smith is interested in buying the stock of Blossom, Inc., which is increasing its dividends at a constant rate of 6.5 percent. Last
year the firm paid a dividend of $2.65. The required rate of return is 14.00 percent.
Excel Template
(Note: This template includes the problem statement as it appears in your textbook. The problem assigned to you here may have
different values. When using this template, copy the problem statement from this screen for easy reference to the values you've
been given here, and be sure to update any values that may have been pre-entered in the template based on the textbook version
of the problem.)
(a1)
What is the current value of this stock? (Round answer to 2 decimal places, e.g. 15.20.)
Current value
2

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