FOUND.OF FINANCIAL MANAGEMENT-ACCESS
FOUND.OF FINANCIAL MANAGEMENT-ACCESS
17th Edition
ISBN: 9781260519969
Author: BLOCK
Publisher: MCG
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Chapter 10, Problem 27P

All of the following problems pertain to the common stock section of the chapter.

Stagnant Iron and Steel currently pays a $12 .25 annual cash dividend ( D 0 ) . The company plans to maintain the dividend at this level for the foreseeable future as no future growth is anticipated. If the required rate of return by common stockholders ( K e ) is 18 percent, what is the price of the common stock?

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